VAT

[Snoopy]

Almost a certainty to be increased ...... Do we care?
I have always felt that VAT is a better tax than taxes on income. If you don't want to pay it you don't buy anything. Simples.
What do we think?
How should the Goverment set about raising the cash needed to pay our debts?

[Snoopy]

Oh and this statement would have nothing to do with Lord Sainsbury being a Labour Peer or my other post (http://www.virtual-pub.com/SMF/index.php?topic=7870.0) regarding Sainsbury's massive and increasing profits would it?

J Sainsbury today warned that future sales growth could be impacted from a possible rise in VAT to 20 per cent under the new coalition Government.

Announcing the supermarket group’s full-year results, chief executive Justin King said: "A VAT rise to 20 per cent is clearly on the Government's mind. What we would say is we need to know in good time and would say that there needs to be sensible timing and not in our key trading periods such as the run up to and in the aftermath of Christmas."

According to a BBC survey of leading economists, 24 out of 28 experts said they expected a rise in VAT from 17.5 per cent to 20 per cent in the coming Parliament.

The move could raise as much as £11.5 billion a year, according to analysts.

http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article7124966.ece

[Uncle Mort]

Surely their core product (food) doesn't attract VAT?

Go for it I say, an extra ?11.5 billion a year would be a start.

[Snoopy]

VAT on food depends on how it is sold ..... some does attract VAT (Cooked Meats, crisps, ready prepared meals for example) and of course there's all the booze, flowers, pots n pans, paper napkins, ciggies, magazines, books, stationery, CDs, DVDs, make-up, toiletries, razor blades, clothing, tights, knickers,  ..... actually quite a lot of your average supermarket basket does attract VAT and that's before you see how much they sell in the way of microwaves, TV sets, DVD players, rice cookers, electric fires, electric fans etc etc.
Asda are even worse and as for Tesco ~ half the local store is given over to non food items.

[Barman]

I reckon we (well you lot) pay enough tax on what you earn without being taxed again on what you spend... remember upping VAT will increase the cost of fuel too (which is a tax on a tax) and therefore push up the price of everything...

I'd rather see spending slashed - I'd start with every single quango and fake charity then pull out of Europe....

[Uncle Mort]

I believe it's going to be cut spending and raise taxes. We're doomed otherwise.

[Barman]

I believe it's going to be cut spending and raise taxes. We're doomed otherwise.

The worst case scenario is to cut a bit of spending and raise taxes massively while still pissing away billions on quangos and Europe...

[Darwins Selection]

I refuse to take part as you can only select one option

[Barman]

I refuse to take part as you can only select one option

Good point... I was going to select...

Make savings from current expenditure and leave taxes alone
Pull out of Europe and save ?billions
Scrap Trident and any replacement

[Pastis]

I'd vote for any of the above that resulted in my retaining some choice in the matter, i.e. not Income tax.

Of course what one should do, hypothetically ahem  , is to become vat registered on the flat rate scheme, trade up to no more than ?150K p.a., apply the vat of say, 20% (?30K) and under the terms of the scheme only return 10% p.a. to HMRC (?15K). As for what happens to the remaining ?15K one couldn't possibly say.

 

[Nick]

Theer is something quite different that they could and may do, though I have heard no mention of it, which is to cut the block grant to Local Authorities and tell them to raise their own dosh via Council Tax. That would concentrate some minds.

[Snoopy]

Theer is something quite different that they could and may do, though I have heard no mention of it, which is to cut the block grant to Local Authorities and tell them to raise their own dosh via Council Tax. That would concentrate some minds.

Of course the Lib/Dems have long held that a "Local Income Tax" is what is needed but they seem to have quietly dropped that idea in the past few years.

I'm not keen on local taxes as there is always a basic unfairness in the way they are assessed.
The Poll Tax was always a non-starter. Local Rates were based on size/rentable value (always a best guess situation) of the property and took no account of the cost of upkeep on larger properties often maintained on a diminishing income and the American Local Sales Tax simply gets people into their cars to make their purchases somewhere cheaper. The current Council Tax is a total shambles as it too is based on a best guess estimate of the rentable value of the property.
The sheer cost of collecting local taxes is another thing I have "issues" with. One central tax collection agency is the cheaper option by far and a tax on expenditure seems to me to be fairer than taxing income.

[Nick]

Quite, but that doesn't mean they won't do it!

[Barman]

Theer is something quite different that they could and may do, though I have heard no mention of it, which is to cut the block grant to Local Authorities and tell them to raise their own dosh via Council Tax. That would concentrate some minds.

Of course the Lib/Dems have long held that a "Local Income Tax" is what is needed but they seem to have quietly dropped that idea in the past few years.

I'm not keen on local taxes as there is always a basic unfairness in the way they are assessed.
The Poll Tax was always a non-starter. Local Rates were based on size/rentable value (always a best guess situation) of the property and took no account of the cost of upkeep on larger properties often maintained on a diminishing income and the American Local Sales Tax simply gets people into their cars to make their purchases somewhere cheaper. The current Council Tax is a total shambles as it too is based on a best guess estimate of the rentable value of the property.
The sheer cost of collecting local taxes is another thing I have "issues" with. One central tax collection agency is the cheaper option by far and a tax on expenditure seems to me to be fairer than taxing income.

I agree... the more taxes you have the more costly and complex it is to recover them...

Remove Income Tax and bung it all on VAT... job done...as simple as... and suppliers even collect it for you...

Of course, the EU wouldn't allow it...  

[Pastis]

Remove Income Tax and bung it all on VAT... job done...as simple as... and suppliers even collect it for you...

May I refer the Hon Member to post #9 above?