Thread: Tax Cuts!
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Old 26-11-2008, 18:31   #57
derekgas
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Re: Tax Cuts!

Quote:
Originally Posted by Royboy39 View Post
You are right with prices having to be changed on individual items such as newsagents, toy shops and other retail outfits....that does cost money.
On the second part regarding VAT. The VAT paid on goods by retailers or manufacturers is claimed back from the government. The new rate has to be paid to the government.
If an item was purchased with 17.5%. and the new rate is 15% - 15% is what you would have to pay on irrespective of what VAT was claimed.
But the retailer loses 3 quid in every hundred for however long the stock is carried, compared to what they buy in now. In terms of work carried out last week, which in our case would be around £5000, if we changed the invoice (from the quoted figure), then overall we lose out, the vat on labour rather than products is the issue. some of our products are bought in at the full rate, and sold on at 8%, and we cant claim that back for three months as it is, and so lose interest too.
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Last edited by derekgas; 26-11-2008 at 18:33.
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