VAT decreased from 17.5% to 15% yesterday, but Apple's prices for UK customers are still at the 17.5%.
I wonder when Apple will drop their prices.
I wonder when Apple will drop their prices.
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I wonder when Apple will knock off 2.5% for UK buyers
- Thread starter SimonTheSoundMa
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Retailers have to wait until Monday to adjust their prices, so I wouldn't buy that Mac Pro you've been looking at for a few days yet.
Yep... seems unlikely as another factor is the strength of the pound. Given that apple usually only change prices with a refresh, the difference will be minimal if anything.
Most retailers might not drop they're prices for a while though, i think because they've bought stock at 17.5% only to sell it on at 15%.... not sure though, and this doesn't apply to apple.
Most retailers might not drop they're prices for a while though, i think because they've bought stock at 17.5% only to sell it on at 15%.... not sure though, and this doesn't apply to apple.
VAT wasn't dropped yesterday - the decrease is from Monday 1st December.
The 2.5% drop is little more than a token gesture but is causing me (and loads of other small business owners) a real pain in the neck: We sell a lot of annual contracts (for things such as web hosting, email, support, etc) and we now have to go through each one and issue credits for the difference in VAT from the 1st December to the end of each contract. We can claim the VAT we credit back, but it's the time lost to actually doing this that's the pain...
I bet a lot of shops will just put their prices up a little bit. Hardly seems worth re-labeling all your items from 9.99 to 9.97.
On the whole the cut is a stupid idea. 2.5% is never going to make anybody buy something they wouldn't have bought anyway and then they are gonna hit us with NI and fuel duty!
On the whole the cut is a stupid idea. 2.5% is never going to make anybody buy something they wouldn't have bought anyway and then they are gonna hit us with NI and fuel duty!
Even if you're not really ace at maths.....
Personally, I think 2.5% is a lot. Sure, you can look at an individual purchase and say it's not a lot of money, but this isn't about individual purchases. If you spend a total of £11700 (for example) this year on rent, utilities, eating out, etc, you'd save almost £300. It's not a great deal, but enough to make a difference.
On the other hand, I'm one of those people who doesn't think that lowering taxes like this is a good idea, as you'd have to eventually raise it back up anyway. Rather than lowering it now and raising it later, keep it where it is. I don't mind paying taxes as long as we (i.e. society) benefits. If the money is spent well, fantastic. I'd hate to see it wasted, but I certainly don't mind paying it if we're better off for doing so.
Besides, there's no magic in regards to spending. If you take money out of the system, part of it has to suffer. So what's it going to be, education or NHS?
I'm in another SME - it's a royal pain in the ass. Should have just taken 1p off income tax & NI contribs for Dec onwards.
Doug
PC World are already charging VAT at 15%.
They are keeping their prices at the old 17.5% rate and knocking off 2.13% at the checkout to bring the price in line with the new rate. I can see a lot of retailers going this way so they don't have the hassle of re-pricing all the goods on display.
They are keeping their prices at the old 17.5% rate and knocking off 2.13% at the checkout to bring the price in line with the new rate. I can see a lot of retailers going this way so they don't have the hassle of re-pricing all the goods on display.
That's how I assumed it'd be done... hasn't dulled the bitching from a sizable portion of retailers though.
Even if you're not really ace at maths.....
You'd never think I did maths for a living
This is true, if you add it up it does make a dent. Unfortunately the dent is only temporary, the increase in NI will cost me an additional £300 per year indefinitely. This ties in with your comment that they just have to raise something else.
I think that the key is to make savings where there is unnecessary bloat in the system (easier said than done). For example, simplifying the tax system will save money in terms of administration costs (not that the recent simplification is any less complex). However, this again has drawbacks, who will hire all the civil servants who are no longer needed?
They should get some more consultants in to streamline things...
While I don't object to adverts which support sites, did you really have to post a referral link to make your point?
As for the VAT decrease, it was hailed as a stimulant to the market. The problem is that the people who are suffering most (those on low incomes) spend a much greater percentage of their income on goods and services which are either VAT-free or charged at a very low rate, such as household utilities, food and public transport.
If the Government REALLY thought this though then they would have reduced the duty on petrol and diesel which would not only encourage people to explore the country in a touristic fashion but also enable EVERY kind of product to reduce in price because it's not costing as much to deliver to stores. Further, if people are spending less money on petrol as individuals then that's more money they can spend on other things and thus stimulate the market much more.