Lee54 Posted December 1, 2008 Share Posted December 1, 2008 Called at a shop this morning for my paper, milk and fags and was charged the sameprice as last week. Lunch time we went to a cafe and the prices had not changed, are the local shop keepers cashing in on a bit of extra income ?. Link to comment Share on other sites More sharing options...
Pat Ayres Posted December 1, 2008 Share Posted December 1, 2008 If they're VAT registered, probably. You may find most of them are already lowering prices to get custom so won't be making any extra profit, just less of a loss. Link to comment Share on other sites More sharing options...
Slim Posted December 1, 2008 Share Posted December 1, 2008 Called at a shop this morning for my paper, milk and fags and was charged the sameprice as last week. Lunch time we went to a cafe and the prices had not changed, are the local shop keepers cashing in on a bit of extra income ?. You don't pay vat on newspapers and food. Tobacco, booze and petrol had the vat rise offset with higher duties. So everything you mentioned should be at the same price. Link to comment Share on other sites More sharing options...
Lee54 Posted December 1, 2008 Author Share Posted December 1, 2008 Called at a shop this morning for my paper, milk and fags and was charged the sameprice as last week. Lunch time we went to a cafe and the prices had not changed, are the local shop keepers cashing in on a bit of extra income ?. You don't pay vat on newspapers and food. Tobacco, booze and petrol had the vat rise offset with higher duties. So everything you mentioned should be at the same price. I dont think that the duty has been raised on fags and booze yet so fags should be a little cheaper. Vat is charged on food eaten in a cafe. Link to comment Share on other sites More sharing options...
Miss Take Posted December 1, 2008 Share Posted December 1, 2008 I dont think that the duty has been raised on fags and booze yet so fags should be a little cheaper. Vat is charged on food eaten in a cafe. Fags are almost always immediately affected by duty rises - the fag companies only get a couple of days to amend their pricing for it. so that duty went up last week. The alcohol duty rise is effective from today. Link to comment Share on other sites More sharing options...
Lee54 Posted December 1, 2008 Author Share Posted December 1, 2008 I dont think that the duty has been raised on fags and booze yet so fags should be a little cheaper. Vat is charged on food eaten in a cafe. Fags are almost always immediately affected by duty rises - the fag companies only get a couple of days to amend their pricing for it. so that duty went up last week. The alcohol duty rise is effective from today. OFT are not aware of any increase on duty to fags or booze, the expected rise on the booze is by the supplier http://www.manxradio.com/readNEwsItem.aspx?id=29062 From customs office 4. The new rates of duty are: • cigarettes: An amount equal to 22 per cent of the retail price plus £112.07 per thousand cigarettes; • cigars: £163.22 per kilogram; • hand-rolling tobacco: £117.32 per kilogram; • other smoking tobacco and chewing tobacco: £71.76 per kilogram. No change in the rate of duty Link to comment Share on other sites More sharing options...
mojomonkey Posted December 1, 2008 Share Posted December 1, 2008 Surely VAT is still 17.5% here, the reduction was part of the UK budget not the Manx one. The VAT reduction means an estimated £40 million loss of revenue to the Manx economy, maybe you'll want to think about that one when you're moaning that you haven't had ten pence off your fags. Link to comment Share on other sites More sharing options...
Tempus Fugit Posted December 1, 2008 Share Posted December 1, 2008 until there is an instruction or public notice from IoM revenue and customs, all of this is hearsay, the UK revenue stated on their website that all vat registered companies would be receiving a letter informing them of the new rate, but so far I have not received any official instruction it's the usual bumbling mess Link to comment Share on other sites More sharing options...
oldmanxfella Posted December 1, 2008 Share Posted December 1, 2008 Surely VAT is still 17.5% here, the reduction was part of the UK budget not the Manx one. The VAT reduction means an estimated £40 million loss of revenue to the Manx economy, maybe you'll want to think about that one when you're moaning that you haven't had ten pence off your fags. It strikes me that Customs here are doubly buggered then. Shopkeepers here can still charge VAT at 17.5% but effectively Customs only get to keep the VAT share with the UK based on the 15% rate applied in the UK so any shopkeeper here can happily make an extra 2.5% on every transaction which goes straight to the UK Government which they keep and don't share back with the IOM. Sounds good to me. No wonder were set to lose £40m. Link to comment Share on other sites More sharing options...
mojomonkey Posted December 1, 2008 Share Posted December 1, 2008 Shopkeepers here can still charge VAT at 17.5% but effectively Customs only get to keep the VAT share with the UK based on the 15% rate applied in the UK so any shopkeeper here can happily make an extra 2.5% on every transaction which goes straight to the UK Government which they keep and don't share back with the IOM. Sounds good to me. No wonder were set to lose £40m. I ain't an accountant but I'm fairly sure your economics aren't right. Link to comment Share on other sites More sharing options...
Slim Posted December 1, 2008 Share Posted December 1, 2008 I dont think that the duty has been raised on fags and booze yet so fags should be a little cheaper. Vat is charged on food eaten in a cafe. Yep, but your milk is vat free. Was in hmv and Game, and they knocked the 2.5% off as an after sales discount. Link to comment Share on other sites More sharing options...
John Wright Posted December 1, 2008 Share Posted December 1, 2008 The VAT rate has changed here Its on the Government web site Duties went up here as well Thats what you get in a customs union where one side is more powerful, no discussion, just a dictat Remember it is only 21p in £10 on VAT able goods and services so with duty up on fags and fuel there is no difference, with no VAT on papers there is no difference, no VAT on a butty or pie so no difference. Its only likely to be on big white and brown goods that we see reductions, most items priced at 1.99 or 5.99 will stay and the retailer make a few pence extra Eat in at the cafe well they are making 2 pence extra for every pound you spend. Retailer have always rounded to easy prices for change and for being just under the next pound, used to be 19s 11 1/2 d Link to comment Share on other sites More sharing options...
John Wright Posted December 1, 2008 Share Posted December 1, 2008 I dont think that the duty has been raised on fags and booze yet so fags should be a little cheaper. Vat is charged on food eaten in a cafe. Yep, but your milk is vat free. Was in hmv and Game, and they knocked the 2.5% off as an after sales discount. Not milk served in a glass to drink in. That is subject to VAT. Milk in a shop, delivered or to take away is tax free. same with meat fish and vegetables bread and cakes, but not biscuits. That is why it is so important for a jaffa cake to be a jafa CAKE no VAT. If it was a jaffa biscuit it would be 17.5% more Put it on a plate in a cafe and it is 17.5% more Link to comment Share on other sites More sharing options...
Slim Posted December 1, 2008 Share Posted December 1, 2008 Yep, I know John, just responding to the original post who I'm presuming bought a pint of milk with his paper, not a glass Link to comment Share on other sites More sharing options...
Miss Take Posted December 1, 2008 Share Posted December 1, 2008 stuff sorry, had my UK head on, but judging from Mr Wright's postings below, er, above, the rates have indeed changed on the IOM Link to comment Share on other sites More sharing options...
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