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VAT increase

 
 
On 12 Apr 2010 at 2:51pm Clifford wrote:
The Tories say they have 'no plans' to increase VAT. Now Labour have said they have 'no plans' to increase VAT. So it looks as if we should be preparing ourselves for a rise in VAT to 20% (at least) this year.
 
 
On 15 Apr 2010 at 1:55pm Ed Can Do wrote:
Register yourself as a self-employed business selling sandwiches then register for VAT and claim back the VAT on most of what you spend out if it really bothers you. Cold sandwiches are zero rated so you have no VAT ot pay over and you can claim back all the VAT on your food shopping (Since no tax man will ever be bothered enough to go through your receipts). Put down a paltry, made-up income on your tax return so they believe you're running a real business. You'll pay a bit of tax on the made up income but if you play your cards right, it'll be less than you're claiming back in VAT.

Or you could actually start selling sandwiches of course.
 
 
On 15 Apr 2010 at 4:12pm Clifford wrote:
Ed Can Do - it's not that increased VAT 'bothers' me in the way you suggest. My concern is that it is a tax that bears down heaviest on the poorest.
 
 
On 15 Apr 2010 at 8:19pm Ed Can Do wrote:
I know, I was just putting that out there really.

Theoretically, really poor people never pay VAT as it's only imposed on non-essential items. There's no VAT on meat and produce, public transport and kids clothes and a reduced rate on domestic fuel. Of course over the years the definition of "luxury items" has increased and increased but technically, you can live without ever paying a penny of VAT. The idea behind progressive taxation like VAT is that the more you spend, the more you pay, if a blanket rate of VAT was put on absolutely everything then everyone would pay the same amount as a proportion of their income. VAT and similar sales taxes are seen as very fair taxes by free market fans, but then most free market fans tend to be rich...
 
 
On 15 Apr 2010 at 11:00pm Brixtonbelle wrote:
"Theoretically, really poor people never pay VAT as it's only imposed on non-essential items."

Last I heard ECD, there was still VAT on sanitary towels and tampons. Pretty essential items for half the ppoulation, surely...?
 
 
On 16 Apr 2010 at 7:32am Annette Curtin-Twitcher wrote:
Poor people pay VAT on insurance, household appliances, clothes and all sorts of essentials, including cake.
 
 
On 16 Apr 2010 at 7:38pm Ed Can Do wrote:
Insurance is exempt from VAT, you do pay a seperate Insurance premium tax, although it's a lower rate than VAT. You don't need household appliances, although there is VAT on washing up liquid.

I concede on all the other points though.
 
 
On 17 Apr 2010 at 4:37pm Annette Curtin-Twitcher wrote:
So you cook on a fire and shop every day so you don't need a fridge then, Ed?
And how do you get your clothes clean? There are no rocks in the Ouse on which to bash them.
I think there's VAT on all sorts cleaning, toiletries and household stuff, including bog rolls, I believe, and tampons etc.


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