Quote:
Originally Posted by gynn
It probably means that a £9.99 item will go up to £10.99. Not a 2.5% increase, but a 10.1% increase.
And if anyone charges you an extra 2.5% claiming it is the VAT increase, then they are conning you.
For example, if the charge is £10.00, they might put it up to £10.25. However, the £10.00 was made up of £8.51 plus £1.49 VAT. The new charge should be £8.51 plus £1.70 VAT = £10.21.
Not a lot, you might think, but a nice little earner for the supplier.
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If any price increase is only VAt then you would be correct in your maths. However in our case the VAT is only a very small percentage of cost increases, so we have to include those as well. Many small businesses aren't VAt registered so the actual VAT on the goods themselves is not the only extra, delivery costs & service costs are also increased by the VAT.
If you still think it's a nice little earner I would be quite happy to listen to any offers for the purchase of my business
