Quote:
Originally Posted by claytonender
If VAT is being levied at 17.50% in pound shops the nett price is 85p + VAT of 15p, which gives a selling price of £1.00. From Monday, when VAT is 15% - if they pass the VAT reduction on they should be charging a nett price of 85p + VAT of of 13p, which gives a selling price of 98p. But I suspect that they will increase there nett price to 87p, which with VAT of 13p would give a selling price of £1.00.
I know 2p is not a great increase in their profit margin.
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It is a 2.4% profit increase for the shop thanks to the governments attempt to reduce the purchasers cost.
I agree I was wrong with the 34 year bit. I must have only half read the info I got it from.