Pre Budget Report...

[arwilson80]

...looks like there may be some (temporary) relief for us V6 owners.

Will he be saying anything about taxes?

Usually there are few tax or benefit measures in a pre-Budget Report. That's really reserved for the Budget in spring.

But in the current difficult economic circumstances, it is widely expected that the government will announce an immediate cut in Value Added Tax (VAT) to 15% from 17.5%.

The chancellor is also expected to help businesses through the postponement of the next rise in corporation tax.

He is also expected to postpone the planned rise in vehicle excise duty, and extend the system of rebates for people affected by the abolition of the 10 pence tax rate.

[rentonj]

Great news. Just bought 1 year tax though to avoid the increase.

Think they realise that the tax increases were unfair and thanks to a lot of campaining have lost their nerve. I know Porsche were putting a lot of pressure on the government to scrap the increase.

Don't you feel sorry for all of those people who went out and bought Blue Motions and the like to get free car tax. Looks like they will still have to pay and drive a crap car.

[arwilson80]

Originally Posted by rentonj

Think they realise that the tax increases were unfair and thanks to a lot of campaining have lost their nerve.

This is only a temporary reprieve as things aren't going well economy wise... once it all picks up again thet VED increase will be back on the cards i would imagine.

[Maxxed_Ross]

sounds like things might be looking up a bit. The drop in VAT should make quite an impact

[papa_lazaroo]

It will on my income, I am registered at flat rate ( I invoise 17.5% but only pass on 11% instead of doing monthly VAT returns) It means on the months when I buy lots, I loose out on VAT I cannot claim back.

Any way, I'll be loosing 2.5% of my top line. Damned

[dvid]

boo! Why cant they reduce again the rate they put up so I dont have to pay over £200 for 6months road tax next month!

[arwilson80]

Originally Posted by Maxxed_Ross

sounds like things might be looking up a bit. The drop in VAT should make quite an impact

If the VED stays the same (as now) and the VAT is reduced to 15% it'll save about £500 a year on VED and Petrol.

[dave87]

Reducing VAT makes no sense to me what so ever. Firstly 2.5% is nothing really on regular/not so regular expenses. Add to this the cost of implementation of the prices reductions on the ground in shops which will I would imagine make the overall price reduction on the shop floor around 1.5%-1.75%.

Taking the company I work for and the one I previously worked for I know how much it costs in terms of staffing to implement price changes of a few hundred products not to mention the thousands of product lines in the shop.

[rentonj]

Its a tax incentive to encourage people to buy as you only get the saving when you buy something. If you save your money you will not see any advantage.

[dave87]

Yeh I see the logic but if you buy something at £100 the new price next monday will be (assuming you get the whole 2.5% decrease) will be £97.87.

Even if i was two buy a 180 on a forecourt at £5000 today the new price would only be 4893.62