danny11 Posted January 5, 2011 Share Posted January 5, 2011 No, it doesn't. How on earth can it? VAT is a tax on the consumption of everyday items, not just luxuries. Essential items that most people need to live on a day-to-day basis. If a disadvantaged person has only a few pounds to spend on these essential items per week, Then their spending power has now been reduced because of the Tory/Lib Dem tax increase. The Poorest in society will have to eat less, put on their heating less often and be unable to afford new clothes. Should i get the violin out, was it anyone fault their were a failure at school, too lazy to learn a trade and cant be arse to work hard to have a decent standard of living Link to comment Share on other sites More sharing options...
Obelix Posted January 5, 2011 Share Posted January 5, 2011 More like take home £12.4k Tax and (NI) tax takes 1.9k Council tax £1.1k Rent £3k + 0 (VAT) rated food, some £1k+ Utilities £2k Transport £1k-5k+ People have sod all left to spend on items that attract VAT. Probably living on credit to buy the essentials. 15% on the dole and 50% of Sheffielders going insolvent over the course of a lifetime if insolvencies remain at the present rate/ Take home pay is after the tax and NI has been removed remember... Link to comment Share on other sites More sharing options...
Cyclone Posted January 5, 2011 Share Posted January 5, 2011 Should i get the violin out, was it anyone fault their were a failure at school, too lazy to learn a trade and cant be arse to work hard to have a decent standard of living None of that alters the fact that a VAT rise is a regressive tax measure. IE it raises tax on those with the least by the most. Link to comment Share on other sites More sharing options...
convert Posted January 5, 2011 Share Posted January 5, 2011 No, it doesn't. How on earth can it? VAT is a tax on the consumption of everyday items, not just luxuries. Essential items that most people need to live on a day-to-day basis. If a disadvantaged person has only a few pounds to spend on these essential items per week, Then their spending power has now been reduced because of the Tory/Lib Dem tax increase. A multi-millionaire might now only purchase six new yachts in a year, instead of seven. The Poorest in society will have to eat less, put on their heating less often and be unable to afford new clothes. It is a ridiculous, even lunatic notion to suggest that a tax on consumption hits everybody equally in a society with such a huge disparity in wealth. My Bold. I really think that you should get your facts right. Domestic heating (Whether that's Gas, Electric, Coal or Oil) is charged at the reduced rate of 5% VAT; which hasn't been changed). Basic food stuffs are in the main VAT exempt (other than the probable increases due to higher transportation costs), as are Bingo, Lottery tickets and betting. Please see http://www.hmrc.gov.uk/vat/forms-rates/rates/goods-services.htm#4 To say that the VAT rise will have more of an effect on the poorest members of society is too big a generalisation for me though. It all depends on peoples individual circumstances. I reckon it'll hit the 2 bob millionaires the hardest. Link to comment Share on other sites More sharing options...
drakej Posted January 5, 2011 Share Posted January 5, 2011 I dont have enough to spend freely now - so I will be spending even less now all the bills have increased - oh the joys of being an adult - bet the mps aren`t tightening their belts they will just claim on expenses!!!!! Link to comment Share on other sites More sharing options...
espadrille Posted January 5, 2011 Share Posted January 5, 2011 No, it doesn't. How on earth can it? VAT is a tax on the consumption of everyday items, not just luxuries. Essential items that most people need to live on a day-to-day basis. If a disadvantaged person has only a few pounds to spend on these essential items per week, Then their spending power has now been reduced because of the Tory/Lib Dem tax increase. A multi-millionaire might now only purchase six new yachts in a year, instead of seven. The Poorest in society will have to eat less, put on their heating less often and be unable to afford new clothes. It is a ridiculous, even lunatic notion to suggest that a tax on consumption hits everybody equally in a society with such a huge disparity in wealth. A rather hysterical post in my opinion. A more balanced view here. http://www.thisismoney.co.uk/bargains-and-rip-offs/money-saving-ideas/article.html?in_article_id=506772&in_page_id=512 Link to comment Share on other sites More sharing options...
espadrille Posted January 5, 2011 Share Posted January 5, 2011 and some really good tips here. http://www.thisismoney.co.uk/bargains-and-rip-offs/tips-and-guides/article.html?in_advicepage_id=172&in_article_id=487457&in_page_id=5 Link to comment Share on other sites More sharing options...
taxman Posted January 5, 2011 Author Share Posted January 5, 2011 A rather hysterical post in my opinion. A more balanced view here. http://www.thisismoney.co.uk/bargains-and-rip-offs/money-saving-ideas/article.html?in_article_id=506772&in_page_id=512 Quote from the article 'For instance, a gingerbread man decorated with two chocolate eyes is exempt from VAT, but if it contains any more chocolate, standard-rated VAT is charged. Likewise, unshelled salted nuts are exempt, but shelled salted nuts are not.' Such silly VAT rules confuse consumers, businesses and HMRC alike. You should see the fight HMRC had regarding whether or not Jaffa Cakes were cakes or biscuits! Link to comment Share on other sites More sharing options...
mj.scuba Posted January 5, 2011 Share Posted January 5, 2011 Apparently the extra 2.5% VAT will raise an additional revenue £13bn per year. One can only assume then, that when Alistair Darling made the stupid decision to cut VAT by 2.5% for 12 months, he actually lost the tax coffers circa £13bn, at a time when he should have building them up. Perhaps ths latest VAT rise only makes up for what Labour lost in VAT revenue. Link to comment Share on other sites More sharing options...
taxman Posted January 5, 2011 Author Share Posted January 5, 2011 Apparently the extra 2.5% VAT will raise an additional revenue £13bn per year. One can only assume then, that when Alistair Darling made the stupid decision to cut VAT by 2.5% for 12 months, he actually lost the tax coffers circa £13bn, at a time when he should have building them up. Perhaps ths latest VAT rise only makes up for what Labour lost in VAT revenue. So you are a fan of higher taxation are you? Link to comment Share on other sites More sharing options...
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