15% VAT extended for six hours - should it be for longer?
Well if you thought that traders have passed on the the 2.5% vat due back you are surely mistaken. Some hotel managers have not passed on the 2.5% vat. The quotation received for a wedding reception was exactly the same before and after the 1st December 2009 - when I had to settle the final bill. So Best Western Prmier Mount Pleasant Hotel in Doncaster should be named and shamed. shame on you!!!
Sat, 07/11/2009 - 17:43
- Login or register to post comments
- report as spam
The VAT reduction has neither helped nor hindered my spending habits, primarily because we have not purchased any expensive items.
It would however be good if the concession were to be extended perhaps to the end of the financial year!
Mon, 09/11/2009 - 13:23
- Login or register to post comments
- report as spam
When the rate went down the saving was not passed on by a lot of retailers. I bet the increase will be passed on plus some as soon as the 17.5% rate comes back.
Tue, 10/11/2009 - 01:24
- Login or register to post comments
- report as spam
Is there not a common misunderstanding about the 15% VAT? Sure, for large ticket items the consumer will see the difference in price as a temptation to purchase that new TV, building extension etc On cheaper items say a tube of adhesive, a couple of light bulbs then the the price drop (if passed on) probably makes no difference to the decision to buy. However all those little savings add up, and in the end although we don't notice it they also leave us with more cash in our pockets, which can be spent on further purchases to boost the economy
Fri, 13/11/2009 - 11:23
- Login or register to post comments
- report as spam
SKY increased subscription charges in October to all their customers claiming it was because of the increase in VAT.
Someone forgot to tell them that the increase does not come into effect until January 1st, 2010.
A nice little earner for them!
We can get Freeview from December - Goodbye SKY!!!!!!!!!
Sat, 14/11/2009 - 10:59
- Login or register to post comments
- report as spam
21 Years of helping with your finances
Editor's Picks
Vote now on our poll
The government has announced that the 15% rate of VAT will be extended for New Year's eve traders until they close or until 6am on 1 January 2010, whichever is the earlier.Texts and calls will also benefit from an extension to the lower rate of VAT.
VAT was supposed to return to 17.5% at soon at the clock struck midnight on 31 December - marking the start of 2010. Stephen Timms, financial secretary to the Treasury, says bars, clubs, restaurants and other retailers would struggle to make changes to VAT immediately after midnight.
The move suggests that the government won't extend the lower rate of VAT into 2010 - some pundits hoped that chancellor Alistair Darling might announce such as measure in his pre-Budget report, expected over the next month or so.
But does the rate of VAT actually make that much difference? Have the lower rate encouraged you to spend, and will the return of 17.5% VAT see you tighten your purse strings?
Have your say in the Moneywise forum...