VAT rises to 20%
- Thread starter Verve Designs
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Ruth Mills
Well-Known Member
An extra £2.50 of every £100 my business earns will end up going to the tax man... at least the reduction in small business corporation tax will help offset that a little bit though...
Verve Designs
TAFNO Extensionize
Well yes- that what it will do in the simplest terms! 
Its infuriating to pay for the greed and ineptitude of others though....
Its infuriating to pay for the greed and ineptitude of others though....
Ruth Mills
Well-Known Member
Yep, you're right, it is a pain that we're having to pay for the sins of the rich merchant bankers (Cockney rhyming slang intended).
It will mean that things like hair and beauty products will go up in price too, and will be another kick in the teeth for salons who are VAT registered, who will have to increase their prices or reduce their margins relative to smaller salons who are not VAT registered.
Then things like broadband, mobile phone bills, etc, will go up too.
It will mean that things like hair and beauty products will go up in price too, and will be another kick in the teeth for salons who are VAT registered, who will have to increase their prices or reduce their margins relative to smaller salons who are not VAT registered.
Then things like broadband, mobile phone bills, etc, will go up too.
Terese
Well-Known Member
Did they say how long it will be at 20% for?
Verve Designs
TAFNO Extensionize
Nope- but i'd expect it to be that until they've sorted the defecit.
persianista
Well-Known Member
Apart from the VAT rise, I was happy with the budget. Think they could have cut further though.
nixnewcastle
CND Education Ambassador Newcastle
What was the final turn out of the budget then? I havent seen it yet
persianista
Well-Known Member
The rich are dancing in the streets, the poor are checking out allotments!
They didn't put fags up- YAY!!
They didn't put fags up- YAY!!
steve@nouvatan
Well-Known Member
Is there anything law breaking about setting up another company as a sole trader ie in my case i would call it (Nouvatan equipment sales) as a different company from the main business with another bank account ect and just use that account for kit sales up to the VAT threshold ?? I could shave a huge lump of kit prices that way :twisted:
Hi Steve,
You can have two companies, like a spray tanning business and a restaurant because they are significantly different
But you won't get away with running two similar companies as it will be seen as VAT avoidance. I believe HMRC call it "artificial separation"
You can have two companies, like a spray tanning business and a restaurant because they are significantly different
But you won't get away with running two similar companies as it will be seen as VAT avoidance. I believe HMRC call it "artificial separation"
EMMA AT ELITE
Well-Known Member
INCREASED TO 20%!
Wow that is a big increase. From the 4th of January!
The weeks leading up to the increase I am going to well and truely stock up on all my products.
Would this mean, we would be best to put up our prices?
Am I correct in thinking if we keep our prices the same we are actually going to earn a little less?
For example if a treatment cost £20 by the time we pay 17.5% on that we earn £16.50, so if we pay 20% on a £20 treatment we will earn £16!!
Wow that is a big increase. From the 4th of January!
The weeks leading up to the increase I am going to well and truely stock up on all my products.
Would this mean, we would be best to put up our prices?
Am I correct in thinking if we keep our prices the same we are actually going to earn a little less?
For example if a treatment cost £20 by the time we pay 17.5% on that we earn £16.50, so if we pay 20% on a £20 treatment we will earn £16!!
jo-from-moorspa
Well-Known Member
I can see all the printers in the country dancing with happiness now that we need to change our pricelists again.
It is going to cost us all a bit more but it could have been worse.
But on the bright side there may be bigger discounts at the shows
It is going to cost us all a bit more but it could have been worse.
But on the bright side there may be bigger discounts at the shows
Ruth Mills
Well-Known Member
I can see all the printers in the country dancing with happiness now that we need to change our pricelists again.
It is going to cost us all a bit more but it could have been worse.
But on the bright side there may be bigger discounts at the shows
Printing (of flyers etc) is zero-rated for VAT too!!!
Beautification
Well-Known Member
The budget wasn't as bad as i expected but still a bit of a joke.
How is the VAT rise going to help? ( I don't know much about it) but can't see it helping!
And sorry but don't the government want to get drunken idiots off the streets..the amount of NHS money that goes on binge drinkers gerrin drunk and having to go to hospital so alcohol should be hiked up and so should cigs they're not nesacaties I don't think personally.
How is the VAT rise going to help? ( I don't know much about it) but can't see it helping!
And sorry but don't the government want to get drunken idiots off the streets..the amount of NHS money that goes on binge drinkers gerrin drunk and having to go to hospital so alcohol should be hiked up and so should cigs they're not nesacaties I don't think personally.
This coming from someone who is effected by all child benefits..well not me my mum but ends off going in my ears! It should be reviewed for gods sake, whatever amount it is you get a week for each child regardless of your income is stupid.
