Quote:
Originally Posted by tweetiepooh
The drop in VAT works out at 12.5% (Current - £100 nett -> £120 gross, New is £100 -> £105, saves £15 which is 12.5% of £120.)
Wonder how many people expect 15% off the gross so £120 -> £102 and complain?
I remember when VAT was first placed on takeaways and many places raised their prices more than the change would warrant. I don't think I mind if places do raise prices a little at this time, the drop in VAT would allow them to do that and still lower the total price to customer and make a bit more profit. Hey both seller and buyer win.
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I remember when VAT went up to 20%, pretty sure there were similar 'that doesn't line up right' issues due to the way it's calculated.
---------- Post added at 15:33 ---------- Previous post was at 15:31 ----------
Actually I think I'm thinking of the cut to 15% before that, not the increase!