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Will the VAT rise alter your spending habits?


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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%.

 

Such is the price for paying bills run up by the last government. When Alister Darling sets budgets where expenditure is consistently 30% above tax income you know that the bill will eventually arrive.

Just don't bother paying any of your bills, and then in 4 or 5 years time claim that they were the responsibility of someone else.

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Hmmm, that's a bit like First saying "if you think our bus fares are high, try buying an airfare to Australia" :|

 

More likely if you want the Government to provide £600 billion of services, they will need to collect £600 billion in taxes.

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Such is the price for paying bills run up by the last government. When Alister Darling sets budgets where expenditure is consistently 30% above tax income you know that the bill will eventually arrive.

Just don't bother paying any of your bills, and then in 4 or 5 years time claim that they were the responsibility of someone else.

 

What Funky_Gibbon was referring to has nothing to do with the last Government, or this one, it is just opportunism by some companies who think they can increase their prices under the guise of the VAT increase without anyone noticing.

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What Funky_Gibbon was referring to has nothing to do with the last Government, or this one, it is just opportunism by some companies who think they can increase their prices under the guise of the VAT increase without anyone noticing.

 

Did he tell you that or you just his self appointed PR man?

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VAT has been put up to 20% today.

 

The Govt hopes to raise an additional £13billion over the next three years.

 

But will it also deter spending? Will you cut back on what you buy or will it not make any difference to you?

 

Do you even know whether the things you buy are subject to VAT or not?

 

I doubt that it will deter spending. What else are folks going to do with their money when interest rates on savings are so low. I also think VAT is a good way of raising tax revenues as it is difficult to avoid.

 

I spotted this today http://www.telegraph.co.uk/sport/football/teams/blackburn-rovers/8238422/Ronaldinho-wants-Premier-League-move-say-Blackburn-owners-Venky-who-confirm-bid-for-Brazilian.html

 

There are loads of non dom folk in the UK who pay virtually no income tax on massive earnings, but if they buy Ferarris, petrol, Moet & Chandon and jakuzzis they get hit with VAT. I suspect that Ronaldinho & Beckham can afford it.

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Did he tell you that or you just his self appointed PR man?

 

No, I'm just able to understand basic English.

 

He said that various companies had sent him bills with increases that they blamed on VAT. When he checked the amounts he found the increases were between 5% and 8%.

 

What is there that is difficult to comprehend? Why did you seek to blame the above 2.5% increases on the previous Government?

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No, I'm just able to understand basic English.

 

He said that various companies had sent him bills with increases that they blamed on VAT. When he checked the amounts he found the increases were between 5% and 8%.

 

What is there that is difficult to comprehend? Why did you seek to blame the above 2.5% increases on the previous Government?

 

The cynic in me expects price hikes far above the 2.5 %, so your comment does not surprise me one little bit, Taxman...

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