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Vat Cut & Iom Govt Income


pongo

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Good news for accountants.

 

No it bloody isn't :angry:

 

Is there any truth to the rumour I have just made up that the DoT 2009 roundabout budget is to be slashed in light of the drop in revenue and only 21,868 roundabouts will be built next year?

 

Also that the Governors Bridge roundabout will now only be redesigned twice next year?

 

Shocking news if true

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Has Ireland put their VAT rate up?

 

I got a letter in the post from a supplier today explaining how the changes would affect me and it listed the rates for uk as 15% (as we all know) and Ireland as going up from 20% to 20.5%. Is this correct or have they made a typo?

 

Reprogramming the till was fun. Easy enough to do once I'd waded through the awfully worded instruction book - only took me an hour to work out wtf they were going on about. Nothing on the manufacturers website either, which is a bit poor I think.

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question? if as a trader i PAID 17.5% vat on my stock, and now i have to sell it at 15% vat, have i been robbed of the vat?? or will the government magically work it all out for me and give it me back?? OR do i still sell the product at the price i have taking 17.5% vat into account and make a bit extra as now i only get raped 15% for vat?? is the 2.5% a gift to traders at the shoppers expense? and ofcourse when i'm only actually paying 15% on my stock, i make even more selling at the 17.5% original final price, again at the shoppers expense.

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I had to phone the VAT office on Friday because I haven't had any official notification of this change and it needed to be implemented before tomorrow. This is a bit 'fucking shit' of them, they are quick enough to tell you when you are one poxy day late with your VAT return but when it comes to having to make quite big changes to procedures and the like....nothing, me having to phone them up to ask 'What is going on?' VAT is supposed to be a serious matter.

 

WTF, provided you are VAT registered, you will have already accounted for the 17.5% paid on purchases on your return, so it makes no difference. You were charged that rate of VAT, thus you have to declare it, as with sales. I see what you are saying, but the nett price remains unchanged, the VAT element of a sale/purchase is only relevant to the government (oh and the poor sod that has to administrate it)

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Was chatting to a bloke running a pub resturant today - he seemed totally confused by the whole thing - said he'd had nothing from the VAT office.

 

I was pretty surprised - he seemed clueless about what he should be doing and didn't even know the IOM was included in the cut - I told him I was pretty certain we were.

 

If he doesn't change his prices what would happen? He's collecting more tax than he should be - the customers should be entitled to a refund! He can't claim he's put his prices up as the computer/til will show the net and gross amounts.

 

That could be big trouble!

 

Wonder who else hasn't got a clue!?

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IWTF, provided you are VAT registered, you will have already accounted for the 17.5% paid on purchases on your return, so it makes no difference. You were charged that rate of VAT, thus you have to declare it, as with sales. I see what you are saying, but the nett price remains unchanged, the VAT element of a sale/purchase is only relevant to the government (oh and the poor sod that has to administrate it)

 

As I understood it the VAT reduction has no equivalent application in Manx Law and it is up to traders to decide whether they passed it on or not. Just because the UK Chancellor has reduced it, does not mean that we do.

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To King Lear....If a trader doesnt alter their prices..and they have no obligation to do so, they are not collecting more duty than they should, they are just making a bigger margin.

 

If something is sold for £15 inclusive of VAT the reduction in the rate simply means they have to pass less over to Customs...they are not collecting excessive duty.

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To King Lear....If a trader doesnt alter their prices..and they have obligation to do so,

 

What obligation?

 

 

Sorry my bad...it was a typo. My original post now amended

 

There is no obligation to alter prices. If you sell to the trade, and quote ex-VAT prices, then the price is the same. You simply add less VAT.

 

If you sell to the public, and quote VAT-inclusive prices, then you have the choice of passing on the cut by lowering your prices, or keeping net prices the same and pocketing the difference.

 

Effectively, if you were selling something for £11.75 (inc VAT), you would pay the Treasury £1.75 (the VAT on £10.00). Now you pay the Treasury £1.50, which and keep the difference of £0.25.

 

It's a nice little Christmas gift to traders.

 

S

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