Vat

[Slim]

I'd like to know how raising VAT hurts those with lots of dosh more than those with eff-all. If you're well off you can economise on luxuries. If everything you buy is a necessity you're bollocksed. But if you're right on the edge you probably don't vote tory anyway - so that's all right then!

 

 

 

Most necessities aren't VAT'ed.

[Bobbie Bobster]

now is the time to buy a new car then??

Never is the time to buy a new car, unless you're using someone else's money.

[groudleho]

now is the time to buy a new car then??

Never is the time to buy a new car, unless you're using someone else's money.

 

Removed due to error.

[groudleho]

Is it likely that the UK govt will make further cuts to the IOM share of the common purse agreement thus nullifying any gain due to the vat increase.

[b4mbi]

with the timescale for the introduction of 20% it looks like an impetus for a spending spree to kick start sales, but with a slump when it goes up !

 

An extra 2.5% VAT won't make a huge difference. For a £50 present (net price) that means £1.25 more to pay. However that won't stop the herd panic buying.

 

fixed

 

 

re-fixed

 

people just can't get their heads around that one

 

£42.55 + 17.5% = £50

£42.55 + 20% = £51.06 not £51.25

 

 

tf, A- for reading skills. a* for maths....

[P.K.]

I'd like to know how raising VAT hurts those with lots of dosh more than those with eff-all. If you're well off you can economise on luxuries. If everything you buy is a necessity you're bollocksed. But if you're right on the edge you probably don't vote tory anyway - so that's all right then!

 

Most necessities aren't VAT'ed.

 

Beer & grog should be considered as essential supplies.

 

The point remains though.

[Slim]

 

Beer & grog should be considered as essential supplies.

 

The point remains though.

 

At least with VAT you can plan and save the tax you pay on the higher vatted items. With a rise in income tax you can't.

[GD4ELI]

Is it likely that the UK govt will make further cuts to the IOM share of the common purse agreement thus nullifying any gain due to the vat increase.

I can't see this happening.

[P.K.]

At least with VAT you can plan and save the tax you pay on the higher vatted items. With a rise in income tax you can't.

 

So your clothes aren't essential then Mr Slim?

 

What an appalling thought - like a German beach...

[Slim]

So your clothes aren't essential then Mr Slim?

 

What an appalling thought - like a German beach...

 

I can elect to purchase cheaper items and limit my vat expenditure. I can't do this with an income tax rise. My point is, you've got a choice with VAT. As a tightwad who saves lots this appeals more.

[joeyconcrete]

As a tightwad who saves lots

 

This is what I endeavour to be.

[Albert Tatlock]

I think VAT is a good thing. I can nearly drink two on a Friday now.

[Theodolite]

Treasury Minister Anne Craine MHK talks about the UK emergency budget and how VAT increases will help the Island

 

http://www.manxtube.com/video/1851/VAT-goes-up

 

I can't see how raising VAT will help the Island one iota. It's our money in the first place that is paying the tax.

 

The only - and I mean only - way the Island gains or is 'helped' is when we receive far, far more from the VAT pot than we put in.

 

Those days are now gone.

 

If this is the message from our Treasury Minister after the UK budget, then Lord help us.

[Pragmatopian]

I'll be interested to see generally what the after-effects of the UK budget will be on both the UK and the Isle of Man. The UK needed some tough medicine, but my best guess is that the planned deficit reduction measures are too severe: halving the deficit within five years would have been a more reasonable goal than wiping it out entirely. While an increase in the VAT rate will probably raise some additional money, the accompanying cuts may curtail discretionary spending to a greater extent than anticipated.

[manshimajin]

Isn't the issue with the UK Budget the combined implications of the VAT, the 50 Income Tax rate, plus the hike in CGT for high earners to 28% and the continuation of Inheritance Tax at a relatively low threshold.

 

The VAT will give us some more income of unknown quantum.

 

The other high taxes on high earners should provide a real opportunity to increase the number of high wealth individuals by more than the 40 we seem to have attracted since the tax cap was initiated.

 

As mentioned on another thread IMO the tax cap is in any case no longer really an absolute necessity. The IOMG has never aimed to attract thousands of high earners so a 20% rate on total income looks very attractive to people faced with a 50% +28% +40% take from HMRC if they are moving here to remain not too far away from family in the UK etc etc..Time IMO to get rid of the cap and revert back to attracting people by just being a very safe and secure low tax legislature near to the UK without any other bells and whistles.

 

The very high taxation of high earners in the UK announced in the Budget could thus be a real opportunity to increase income tax revenue here and to attract other rich people in. The prospects are that the UK will have to continue to charge very high taxes for many, many years to come.