OT: Did you know...

[Anne Jackson]

...that VAT ( at 17.5%) is levied on the poppy wreaths which are laid at war memorials on Remembrance Day?

I only discovered that fact this year, and to say that I was extremely upset would be to put it mildly.

So I got in touch with my MP, who has 'done his MP thing' and has received a reply from Dawn Primarolo as a result, stating that, basically, there is nothing that can be done about it now, and the VAT charge will remain....

Well, I told my MP that I was going to make a point of bringing this fact to the attention of as many people as I could...

This is part of that attempt! I would ask anyone who feels that this charge should NOT be levied on wreaths, made by a charity, which in the main are bought by associations which are themselves charitable institutions, to get in touch with your own MP and voice your concerns.

Thank you.

[meow2222]

vat is levied on most retail goods, why would poppies be any different? And what has this to do with diy?

NT

[Dave Plowman (News)]

Why? It's not an essential. Could be the money would be better spent on helping combat veterans.

BTW it's OT for this group. Try asking about making those wreaths. You'll save a lot more than 17.5% VAT.

[Ian Stirling]

Aren't registered charities VAT registered, so they can claim the VAT back?

[Dave Liquorice]

So? VAT is charged on virtually everything other than "essentials" like food or childrens clothes. Even domestic energy attracts VAT at 5%.

Wreaths are not "essentials" and for many organisations the VAT element is not relevant as they will be VAT registered and can claim it back from HMR&C.

[Adrian C]

That's only the goods they buy for themselves.

-- Adrian C

[SirBenjamin]

Instead of ranting and raving about something trivial...wave you arms at the gov/NHS about destroying/incinerating useable millions of pounds worth of drugs each year.

These drugs are welll within their date stamp and can be reissued to the person who use these on prescription.

[Andy Hall]

They can recover the VAT on their purchases and other costs but then have to charge it as output tax to people buying the wreaths.

This is particularly stupid on the part of charities because the materials costs are relatively small and the sell out price quite high. Therefore there is a substantial amount due to teh government.

However, although this seems unreasonable, the charity should be examining itself as well. Why does it feel a need to make something to sell that really has no intrinsic value, just in order to collect charitable donation?

A far better solution would be to dispense with the idea of selling poppies, wreaths and all the rest of it and to encourage people to make charitable donations instead. Then the charity can recover the basic rate income tax and if the individual is willing, higher rate as well. That would be using the tax system to the benefit of the charity rather than the government.

I can appreciate that some people like to see or contribute to wreaths on war memorials etc, but that should be a separate issue for them and not part of the mainstream collection and distribution of charitable funds.

It is perfectly possible to meet all of the objectives and minimise the government's take.

[Huge]

... that TfL charge poppy collectors to collect at DLR stations.

Not that we needed any more evidence that Ken Livingstone is a shit.

[Mary Fisher]

Thank you Anne, I'll do that.

Mary

[Guy King]

The message from "Dave Liquorice" contains these words:

And I don't suppose it amounts to much each year either from the government's side or the charities.

While you're at it, you might as well exempt the fuel from duty for the people travelling to the ceremony, the clothes they're wearing on the day and any hot food afterwards.

[Dave Liquorice]

That is a mine field. I may be wrong but take away hot food does not attrcat VAT but if you have exactly the same food but "eat in" it does. I guess because you are getting the "service of table, chair, heat and light to eat the food in.

[meow2222]

Whats that one about then? Sounds a lot more relevant.

NT

[meow2222]

The poppies boost the annual take considerably. I think a lot of charity giving seems to be guilt based, and displaying one's generosity or perceived meanness is a real motivator for some. So is the desire to fit in with others also wearing poppies. All that would go if no poppies. Plus it serves as a big annual advertisement for the whole thing.

NT

[Andy Hall]

I was in a taxi in central Londn the other day and he was being interviewed on the radio. The taxi driver had a similar opinion. He is certainly not appreciated by London cabbies.

[Andy Hall]

I don't buy it, and actually I don't buy the poppies either. Instead, they are on my list for charity giving and receive more than they would get for selling me a poppy, plus standard and high rate tax.

I think it's a bit sad if the organisation has to resort to selling something that is basically worthless in order to attract donations.

[Guy King]

The message from "Dave Liquorice" contains these words:

That may have changed a while ago - I thought it had. Someone will be along in a bit to tell us.

Meanwhile change the example to cake or chocolate biscuits.

[Andy Hall]

Yes but can you really see Queenie laying out a packet of Chocolate Hobnobs at the Cenotaph? Kourabiedes, perhaps.

[meow2222]

NT

[Ed Sirett]

I believe this used to be the case but VAT is now levied on both eat in and take out and has done so for many years. The two levels of pricing is something that some businesses have continued with subsequently for their own reasons.