Goodbye 7/47ths and welcome 3/23rds

[Steven666]

Anyone else not looking forward to the new VAT rate of 15% starting today apart from me?

Are shops actually going to reprice everything that is standard rate or just keep the gross price therefore improving their sales margins?

Will the administration hassle cost more than the savings made?

Does anybody care?

:-(

[rubyred]

Anyone else not looking forward to the new VAT rate of 15% starting today apart from me?

Are shops actually going to reprice everything that is standard rate or just keep the gross price therefore improving their sales margins?

Will the administration hassle cost more than the savings made?

Does anybody care?

:-(

Funny you should raise this today, I went to buy petrol at my local garage, whilst also asking for a bar of chocolate. The guy who served me told me that Cadbury's have put up their prices for their chocolate as a direct result of the decrease in the VAT. HMMM will this be a con like decimalisation I wonder?!?!

[bigdjiver]

Funny you should raise this today, I went to buy petrol at my local garage, whilst also asking for a bar of chocolate. The guy who served me told me that Cadbury's have put up their prices for their chocolate as a direct result of the decrease in the VAT. HMMM will this be a con like decimalisation I wonder?!?!

Cadburys make items to sell for a pound or 99p as do many other manufacturers. The pound shop & similar rely on this. I believe that the pound shop is passing on the savings by offering a free DVD for every pound spent.

Other outlets are already contemplating price reductions anyway to adapt to the new market conditions. A lot of them are trying to shift stock before Woolworths receivers start dumping stock on the market. We can expect retailers to have a Christmas below expectations, and there to be a wave of business failures in the New Year because many rely on Christmas.

[philsmove]

Are shops actually going to reprice everything that is standard rate or just keep the gross price therefore improving their sales margins?

Will the administration hassle cost more than the savings made?

Does anybody care?

:-(

A who friend runs a small heath food shop, started repricing his 5500 different lines

after doing 500, he decided it would be easier to give everyone a free sweety, for every pound spent

[Stuart M]

A who friend runs a small heath food shop, started repricing his 5500 different lines

after doing 500, he decided it would be easier to give everyone a free sweety, for every pound spent

Now that's business sense - fattening the customers up so they buy even more healthy weight loss products

[Lory]

A who friend

Who was that then?

[Steven666]

The guy who served me told me that Cadbury's have put up their prices for their chocolate as a direct result of the decrease in the VAT.

Now then, cold food. Isn't that zero rated? Or is that a too general of question?

[Icey]

Anyone else not looking forward to the new VAT rate of 15% starting today apart from me?

Are shops actually going to reprice everything that is standard rate or just keep the gross price therefore improving their sales margins?

Will the administration hassle cost more than the savings made?

Does anybody care?

:-(

I spent nearly a whole day re-writing the coding on some of our charge sheets and writing documentation about how it affects only some of our sites as not all are registered for VAT.

Our admin people are lovely and work with our elderly residents very well but can make a complete dogs dinner of accounting things if they are not given very firm instructions.

For a difference of about 10p on each item it was a lot of time spent for very little return ... perhaps though the return will be felt in lower levels of queries in which case it will be worth it.

[rubyred]

Now then, cold food. Isn't that zero rated? Or is that a too general of question?

You tell me, you're the accountant after all

[Steven666]

You tell me, you're the accountant after all

Lol. I knew the answer. Mars bars are now cheaper by a penny.

I just meant that food is an oc-cerred one for VAT.

[Steven666]

According to HMRC:-



You must always
standard-rate (SR)…

ice cream, similar products, and mixes for making them

confectionery, apart from cakes and some biscuits

alcoholic beverages

other beverages, and preparations for making them

potato crisps, roasted or salted nuts and some other savoury snack products

products for home brewing and wine making

but you can
zero-rate (ZR)…

frozen yoghurt that is designed to be thawed before being eaten;

drained cherries and candied peel; and

milk and milk drinks, tea, maté, herbal tea, coffee & cocoa; and preparations of yeast, meat and egg.



------

Now then, what the hell does "some biscuits" mean?

And what about Jaffer-Cakes?

[Icey]

Now then, what the hell does "some biscuits" mean?

And what about Jaffer-Cakes?

Jaffa cakes are classed as cakes and as such are zero rated for VAT - see here

[Peter]

Jaffa cakes are classed as cakes and as such are zero rated for VAT - see here

True. But a more recent case was decided in the opposite direction. United Biscuits argued that a "tartelette" was a cake - it had a biscuit base with raised edges and UB contended it was "filled" with chocolate as opposed to "covered". C&E, and the tribunal, decided it was a biscuit "partly covered" with chocolate and therefore standard rated.

[Steven666]

Jaffa cakes are classed as cakes and as such are zero rated for VAT - see here

Are you trusting Wiki?

[Icey]

Are you trusting Wiki?

True. But a more recent case was decided in the opposite direction. United Biscuits argued that a "tartelette" was a cake - it had a biscuit base with raised edges and UB contended it was "filled" with chocolate as opposed to "covered". C&E, and the tribunal, decided it was a biscuit "partly covered" with chocolate and therefore standard rated.

OK, the HMRC website provides a little more detail HERE
See section 3.4.2

[Steven666]

OK, the HMRC website provides a little more detail HERE
See section 3.4.2

Apparently you're not supposed to eat live horses.

[Gojive]

Apparently you're not supposed to eat live horses.

You should certainly never eat them just before going to bed - you'll end up getting nightmares!

[jeanie]

I was in boots today and they've changed their prices. As for clothing, I can't see Monsoon re-tagging all their clothes, everything is rounded up to the nearest pound. My prices haven't changed at work.

You can argue that the goods being sold in the shop have been purchased by the retailer at 17.5% VAT before the change & that's why prices haven't dropped.

I did have one elderly customer who thought VAT had been completely demolished (i wish!) & should she wait till monday for the new price....

[Beowulf]

Well the McLaren SLR is definitely a luxury product and the 2.5 % drop in VAT will reduce the price by about £7.5K.

of course Muggins here is the one that has to go though our ERP system and change all the VAT rates for Orders after the change to 15% while maintaining the vat rate for cars ordered before the change at 17.5%. Of course the previous coder of the system hadn't really accounted for two possible VAT rates dependant on date.

So several hours of work at my hourly rate , changing the source code recompiling all the modules .. it's hardly worth the.. erm.. wait.. nope it's ok the VAT saved is still more than I get paid for doing that. So in this instance I guess it's ok

Still a pain in the A*** doing all the changes though

[martingold]

You should certainly never eat them just before going to bed - you'll end up getting nightmares!

nightmares???? arghhhhhhhhhh