[little blue]

... well said James.  Its a rant of mine too....

[Wizard]

I know I should not ask but why is an increase in VAT affect you If you are VAT registered  If you buy an article for a pound you will pay the Vendor the current VAT rate.When you sell it you will charge the appropriate of VAT Then you will submit your claim for a VAT repayment and pay THE VAT MAN the dues you have collected free for him as his unpaid tax collector.

[jameslindsay]

I know I should not ask but why is an increase in VAT affect you If you are VAT registered  If you buy an article for a pound you will pay the Vendor the current VAT rate.When you sell it you will charge the appropriate of VAT Then you will submit your claim for a VAT repayment and pay THE VAT MAN the dues you have collected free for him as his unpaid tax collector.

It means you pay the tax man more so you have to put your prices up to cover this - very dangerous at this stage of the "recovery".

[egglady]

think the govt are in a no win situation and have 'inherited' a really deep pile of pooh that they need to find a way to fix.  i think this will be a tough budget, but i think we need it or the entire country will be bankrupt. 

and yes, we'll find it tough too as hubby has just taken a new job with a significant pay cut - but he will be happier and that will be good news for the whole family....hopefully!

oh well, will just have to grow even more veg!

[bazzais]

Glad to hear your looking up WP


I'll be effected by most of the tax rises planned, as I employ people, have a ltd company and am VAT registered, dunno what tomorrow (whoops today as its taken ages to write this)
will bring. 

One reason why a rise in VAT for small/micro business is bad is that many have their prices compared with other small businesses/self employed that are not registered.  I know the flat rate scheme helps alot with this at the moment, I only hope that this is not effected.   The thing is that some businesses are 'expected' to absorb VAT rises to remain competitive.

If I was in charge I'd do something crazy like have a VAT 'holiday' for 10 months - try and get some of those savers to spend their money. Then introduce a tapered 'Flat rate' scheme that didnt matter what business you where in, just how much profit you made. Set the VAT at the current 17.5%, then if your business makes a profit in the year you only pass on a tapered rate from 0% up to a full 17.5% pass on at £50,000 profit. This would encourage the many small businesses that are truly involved with our day to day lives.

We need to be helping small/local business in this crazy environment. 'Big' business has the world market to fall back onto for financial backing - (in 'what they think' is sustainable - ha ha). Small business does not have that backing at the mo, they are on the ground level. Create local jobs not feed national corps.

Ta

Baz

[Wizard]

Oh yes James.I really understand all that.Winging Road Haulers are all  ways on about the price of fuel.They don't pay for it,You do if they do a job for you,and they claim the VAT back.I also appreciate if you are NOT REGISTERED you pay twice and that is something to moan about and needs altering,but how? He is in the s**t up to his hair.Lets hope he doesn't sink and us with him

[jameslindsay]

Oh yes James.I really understand all that.Winging Road Haulers are all  ways on about the price of fuel.They don't pay for it,You do if they do a job for you,and they claim the VAT back.I also appreciate if you are NOT REGISTERED you pay twice and that is something to moan about and needs altering,but how? He is in the s**t up to his hair.Lets hope he doesn't sink and us with him

But Wizard if you are a driver and the cpst of fuel goes up(again and again - as it does) you have to push that price increase on to your cutomer so it does effect the general public too. Time till tell what happens in todays budget.

[Wizard]

But of coarse James but it still not costing you any thing over a period of time only the customer and as I said the non registered

[jameslindsay]

But of coarse James but it still not costing you any thing over a period of time only the customer and as I said the non registered

Wizard I don't mean to be rude but what planet did you fall from? If we have to put our prices up people can't therefore afford to go out to a restaurant for food or a bar for dinner. If customers stop using my hotel I go bust and loose my home - everything. Now tell me why it doesn't effect me please?

[Wizard]

I don't consider you rude at all James we both misinterpreted what was written I claim the Truckers are always moaning about the price the have to pay for fuel Agreed? So they increase the costs on to the customer?Agreed? Then they claim the VAT back?Agreed.Where has it cost them? It's me and thee that pays I don't have a VAT Number now so I cannot claim back.Like the bussiness that is no Vat Registered do you now see my point It's a vicious Tax any way and he is so short of money he is bound to put some sort of Tax on food sooner or later

[bazzais]

I have a few different business under one Ltd and VAT rises affects them in different ways.

With my web work, granted it wont effect me much at all as I invoice for the amount + VAT. My prices wont have to rise in comparison to other businesses as most are VAT registered and we will all just change our invoices VAT final amount to compensate.

With my campsite, I have set round prices eg £5 per night.  I wont be changing the price after a VAT rise and so will have to adsorb that price increase with that cash coming straight off my profit/turnover.

With the farm - the expenditure at the moment far outweights the profits being taken, meaning any VAT increase on farm purchases cannot be offset against incoming invoices.

Yes VAT on fuel can be offset as a business expense, but its the 80p of tax in the £1 on fuel before VAT is even added that stresses most users of fuel.

Well the budget is on now if anyone is interested in watching it develop.

Ta

Baz

[Wizard]

Oh dear now listen to them winge 20% The world will end tomorrow.

[jameslindsay]

Oh dear now listen to them winge 20% The world will end tomorrow.

Wizard, January is one of the hardest months for a hotel to make money as people have spent all their money on christmas. People are fed up going out after all the parties in December and they feel they have eaten out and drank enough for a while. Now, to add pressure to this hardship the hotel owners will have to increase their prices - at a time of year when they are really struggling to cover their bills! Now tell me that we are moaning for no reason.

No the world won't end tomorrow as the increase doesn't come in to effect till January but soon after then MY WORLD may well end or come crashing down about me. I really wish you would consider other people before you make some of your remarks. Remember this thread was started by a guy who thought he was going to loose his world but who may now (fingers crossed) just manage to keep his head above water and the home that he and his family have worked so hard for. Who knows how this increase in VAT may now just put the final nail in his coffin?

At the start of next year my friend perhaps this, as you seem to see it, trivial increase may just bring about an end to the life many of us today enjoy! But hey I pray that your sarcasm is correct and my fears are wrong.

[Wizard]

Don't be so BLOODY HEAVY James.I have offered WP and Princess, Mam as well all the best wish we can.Yes I appreciate hoteliers must suffer badly in January and February too I shouldn't wonder.My poke was at road haulers generally Every time there is an increase They winge and whine, and I don't care what you say James the increases are passed on to their customers.I also have to pay VAT on my fuel but I cannot claim it back So I will expect another Demonstration outside the Refinery gates now.About the tax on fuel You saw yesterday how much debt the country is in I have always said so long as he does not put it on food! We sincerely hope your world does not collapse either.But it still hits the man or woman in the street most.VAT on food will be devastating Won't it

[jameslindsay]

Wizard I am not being heavy I am being honest and realistic. They may not have added VAT on to food but remember the haulier adds his increase in to the supermarket and so the supermarket has to put the price of their food up and up and up! Fuel costs effect every single one us whether we drive or not.