I n our case the killer is fuel prices..remember the £1 a litre strikes? well its £1.30 mow.
Went to the local farmers market today,. Got meat at half supermarket prices. Probably no VAT either ;-)
Spending LESS on goods, more on taxes, is fine by me.
people have to learn to live within their incomes..
But not being able to MEW that 40K in the first place will
tim
Last week, London's Evening standard spent a whole pointless page article lamenting how the tax rise will hit the 'poor' greedy....
"Third Space gyms in Soho, a favourite of celebrities, has raised its annual membership by four per cent from £1,240 to £1,290.
"Most ?London luxuries? will be going up in price significantly. A box of limited edition Cuban Cohiba cigars at Tomtom in Belgravia will rise from £424 to £438.
"At Huntsman in Savile Row, a bespoke medium-weight two-piece suit cost £4,295 before the increase, but now costs £4,386.
"Luxury goods maker Mulberry said its new Tillie shoulder bag had gone up in line with the VAT rise from £795 to £812.
"Treating yourself to a break from all the stress of the New Year in a top London hotel is also more expensive. The Prince of Wales Suite at the Ritz cost £4,406 a night before the VAT increase but you will now be billed £4,500, an extra £94. Minimum room prices at the Savoy were £411 and are now £420.
"Even if your budget only runs to a drink in the American Bar you will pay more. A classic White Lady cocktail, with gin and Cointreau, has risen from £14 to £14.35. Wine merchants Berry Bros and Rudd said the VAT on its average £18.75 pre-tax bottle price will go up from £3.28 to £3.75.
?Been listening to & reading all the doom & gloom in the media about the VAT increase, but will it really affect anyone that much?
£10 worth of screws is now going to cost 21p more, a £75 power tool another £1.60. Even a £250 power tool will only cost a £5 more.Granted your £5K kitchen will cost another £100 or your £40K extension will increase by £850, but will that really stop anyone spending?
-- Dave - The Medway Handyman
When you put it like that, no. However, combine it with increases in the cost of fuel (remembering that all goods have to be transported so shelf prices will go up to cover that cost) and either pay freezes or in some cases, pay cuts, and also the rising cost of car insurance (amongst a host of other things going up) and the vat increase may well be the straw that broke the camel's back for some.
Never mind £1, in 2000 it was aggro against 81p/litre.
In message , The Medway Handyman writes
It's rather more the cumulative effect, than the cost of individual items. If there is slack in a families budget it's not so much of an issue, but for those on a tight budget then these things all add up.
Add it to other things like fuel price rises, wage freezes, things like state pensions not rising very much and for some people it can be very tight.
I am sure the Left will portray it that way: In reality, with especially fuel/energy inflation running at more like 20% a year, 2.5%on VAT makes bugger all difference.
AND if it means the lower paid don't get a tax raise, its probably positive in real terms.
We have been living on borrowed time and borrowed money far too long.
What depresses me is the amount of political correctness and knee jerk responses STILL left in government..
There is zero VAT on food. And as pointed out earlier there is no VAT on fuel to deliver it either as VAT is reclaimed.
All this stuff about the VAT increase on fuel increasing the costs of everything is just lies. It might affect the odd handyman or small trader who isn't VAT registered but it has no effect on the big boys.
Putting it down 2.5% didn't produce the predicted boom in buying, so I rather doubt that put it up 2.5% will make a lot of difference either.
Colin Bignell
But not being able to MEW that 40K in the first place will
MEW?
-- Dave - The Medway Handyman
Only if you use the wrong sort of fuel.
But what haulage firm isn't going to be VAT registered ? - they can claim it back
I managed to pay a bonus this year
If income is fixed and it's all spent then the overall effect is that the money buys less goods and more goes to the taxman. If you are on a very tight budget that may matter. But I expect for most people it won't be very noticeable in itself. People will still spend money on things they want to have if they can. If the 250 power tool costs and extra fiver then probably, without really thinking about it your budget for screws will be trimmed by £5.
Some food. Much is classed as "luxury" and attracts VAT.
Putting it down 2.5% didn't produce the predicted boom in buying, so I rather doubt that put it up 2.5% will make a lot of difference either.
Colin Bignell
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Exactly. Too little to make any difference at all.
-- Dave - The Medway Handyman
Medway Evasion Wangle? (insert smiley of choice here).
There is zero VAT on food. And as pointed out earlier there is no VAT on fuel to deliver it either as VAT is reclaimed.
All this stuff about the VAT increase on fuel increasing the costs of everything is just lies. It might affect the odd handyman or small trader who isn't VAT registered but it has no effect on the big boys.
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Since only 2.1 million of the 4.5 million businesses in the UK are registered for VAT you appear to be talking out of your arse yet again.
2.4 million small businesses, sole traders & self employed do pay the extra VAT.-- Dave - The Medway Handyman
Why is EVOO that good :-)
Serious question. A year or so ago you couldn't move in our local Tesco for trolleys stacked high with cooking oil.
I don't see that anymore, what's changed?
Guy I know lost house, lost job, lost wife, now living with mum at weekends and sleeping in cow barn in week.
Cant get no housing benefit living with mum..just about scraping by on
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