lizmachin Posted January 4, 2011 Share Posted January 4, 2011 VAT, not at all. Inflation on the other hand, will. I will be buying less alcohol and brewing more. Consider, petrol. This past year it increased in price by over 20%, From just under £1 to £1.20 (2p was DUTY, VAT went back up to 17.5% from 15%, so perhaps 1/4 of that inflation was due to taxes and 3/4s commodity inflation). The past day or two we have seen 1p DUTY and an effective VAT rise of 2.13% aswell, giving us 3.13% (~3.5p/L) petrol inflation already this week, and that's all taxes. However, the proportion of the money you spend on petrol that goes to the treasury is actually less now than what it was last year. Because the commodity component price of petrol has increased faster than the tax increases have. Inflation is here. Add 20% to you foodbill to account for inflation, that's going to come quicker than you think (Most food is VAT exempt so that's a bonus). And ask yourself. If prices have gone up 20%, am I getting paid 20% more. I agree. It is inflation in food prices that I have particularly noticed. I am not a UK citizen and pay no tax in the UK other than VAT, alcohol duty and motoring duties. However the rise in these prices seems far higher than any stated inflation. Link to comment Share on other sites More sharing options...
studentbob Posted January 4, 2011 Share Posted January 4, 2011 Heard someone on Radio Sheffield this morning saying that his company would be absorbing the raise so as not to hit customers. Admirable, I thought. Then he followed it up by saying that, of course it would have an effect on staff hours and bonusses etc. His definition of 'the company' obviously extends to all the staff as well. It would be nice to think that this arrangement also applies when divvying up the profits. Link to comment Share on other sites More sharing options...
MrNM Posted January 4, 2011 Share Posted January 4, 2011 You mean the 2.5% increase david cameron said he had no intention of adding in the forseeable future as part of his election speel, it will affect me yes, im already struggling to run my car the way i want to, ive had to resort to being the family taxi for extended family members who dont drive, just to get that extra cash in the tank, i remember when it took just under £4 to fill my gerry can with petrol now the same can takes almost £8. can i just say a quick thanks to all the students who believed the lib dems about all the rubbish they promised fully knowing they had no chance of getting into power on thier own, you've made your own and lot of other peoples lives a lot harder for at least the next 2 years, labour wernt fantastic but id rather have them back than this lot who are in now. Lets get Labour back in so we can save a fiver a week in Petrol! Or we can all take a negligible hit now and have some kind of future!! Link to comment Share on other sites More sharing options...
alchresearch Posted January 4, 2011 Share Posted January 4, 2011 Lets get Labour back in so we can save a fiver a week in Petrol! Or we can all take a negligible hit now and have some kind of future!! And no doubt they'll bring back the ID card, which they blew £292 million on! Link to comment Share on other sites More sharing options...
sedith Posted January 4, 2011 Share Posted January 4, 2011 Just seen the shopkeeper near where I work putting up the new prices on the cigarette kiosk ... £7.02 for a packet of Silk Cut ... to think I packed it it because I wouldn't pay £2.50 for 20. Link to comment Share on other sites More sharing options...
espadrille Posted January 4, 2011 Share Posted January 4, 2011 It's already changed my spending habits. I was in two minds as to whether to buy a new car and a new kitchen this year. Maybe it's only 2.5% increase in VAT but it actually made me think about these purchases. The money is now going towards paying my mortgage off instead. Very very wise. Link to comment Share on other sites More sharing options...
espadrille Posted January 4, 2011 Share Posted January 4, 2011 Had an email today from Nonnas. They are not putting the increase on. Not that I go there a lot.Only for birthdays and special occasions. Link to comment Share on other sites More sharing options...
sedith Posted January 4, 2011 Share Posted January 4, 2011 How many pubs brought down the price of drinks when the VAT went down from 17.5 to 15%? I bet they'll be quick to put it up with the 20% rate. This is open house on business to profiteer by increasing prices way above the 2.5%. Link to comment Share on other sites More sharing options...
Funky_Gibbon Posted January 4, 2011 Share Posted January 4, 2011 How many pubs brought down the price of drinks when the VAT went down from 17.5 to 15%? I bet they'll be quick to put it up with the 20% rate. This is open house on business to profiteer by increasing prices way above the 2.5%. I've had a number of letters in the last few weeks from companies I purchase various services from via direct debit. In each case they're explained how they're very sorry blah blah and BTW we've added an extra pound or two to your monthly bill because of VAT. I've just checked each of them (I was bored) and not one of them is a rise of 2.5%. The lowest is a rise of 5% with the highest being 8%. Link to comment Share on other sites More sharing options...
Treatment Posted January 4, 2011 Share Posted January 4, 2011 Sir Fred Goodwin has asked me to relay his best wishes to you, he would have done it himself, but the telephone lines in the Maldives are a bit crap. Link to comment Share on other sites More sharing options...
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