So now life is 2.5% more expensive...

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  • [Deleted User][Deleted User] Posts: 40,102
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    The extra £1000 tax free is about £20 per month extra, and since VAT is going up, fuel prices are going up, petrol is going up which will probably push transport prices and prices of goods up simply because it costs more to transport, I think we're all going to be worse off... and many poor public service workers will be worse off when they get no pay increase but inflation might go up.

    Yay for the UK...
  • BurstfireBurstfire Posts: 980
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    roland rat wrote: »
    and from april the tax allowance goes up to £7000 for a single person

    How is this a bad thing?:confused:
  • Mark.Mark. Posts: 84,808
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    Don't know where you've got that from but it's wrong. The increase is actually 2.13%.
    Three important numbers:
    1. The increase in the rate of VAT is 2.5pp*
    2. The increase in the amount of VAT you pay is 14%.
    3. The increase in the total price of a good or service (w.r.t. VAT) is 2.13%
    *Percentage points - 17.5%->20%.
  • GrizzyDeeGrizzyDee Posts: 1,396
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    I don't understand the 2.13% thing. I'm not disputing it, but could someone please explain it in Very Simple Terms?

    How come something that costs £100 before VAT so £117.50 old VAT and £120 new VAT is 2.13% more expensive? It's £2.50 more with new VAT, right? I can't find that that's 2.13% more than anything, someone please help!





    EDIT: I just got it. Ask a silly question... :rolleyes:
  • KimmlerKimmler Posts: 1,906
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    No it isn't...100 years ago we paid no VAT and life was 75% more expensive.
  • KimmlerKimmler Posts: 1,906
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    The extra £1000 tax free is about £20 per month extra, and since VAT is going up, fuel prices are going up, petrol is going up which will probably push transport prices and prices of goods up simply because it costs more to transport, I think we're all going to be worse off... and many poor public service workers will be worse off when they get no pay increase but inflation might go up.

    Yay for the UK...
    I hate to break it you but prices go up every year...
  • [Deleted User][Deleted User] Posts: 22,736
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    I'm not going to buy anything that i do not need, no clothes, no Cds and other non essential goods. I think we pay enough in this country for goods and this extra increase has stopped me buying out of principle, so i am happy for the increase, it is encouraging me to see how much i can save.

    it will only be a few pounds a week but that will be necessary for my mortgage increase i was given this month :-(
  • TCD1975TCD1975 Posts: 3,039
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    The extra £1000 tax free is about £20 per month extra...

    Maybe I've misunderstood what you're saying, but isn't £1000 over a year actually £83 a month, not £20.
  • KimmlerKimmler Posts: 1,906
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    I'm not going to buy anything that i do not need, no clothes, no Cds and other non essential goods. I think we pay enough in this country for goods and this extra increase has stopped me buying out of principle, so i am happy for the increase, it is encouraging me to see how much i can save.

    it will only be a few pounds a week but that will be necessary for my mortgage increase i was given this month :-(

    You can save money by not spending it but the bank will lend it for you, therby spending it so the same amount of money will go into the economy.
  • TommyGavin76TommyGavin76 Posts: 17,066
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    I'm not going to buy anything that i do not need, no clothes, no Cds and other non essential goods. I think we pay enough in this country for goods and this extra increase has stopped me buying out of principle, so i am happy for the increase, it is encouraging me to see how much i can save.

    it will only be a few pounds a week but that will be necessary for my mortgage increase i was given this month :-(

    So you're not going to buy anything with VAT on?
  • [Deleted User][Deleted User] Posts: 4,458
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    Jezebeth wrote: »
    Yep, Virgin have already notified their customers of the increase in monthly payment and my television rental company has also put their charges up from the 4th of January. I suppose at the end of the day we will just absorb the extra, but I do wonder what kind of country we will have by the time Cameron and his merry band have finished with us. Back to Victorian times and Charles Dickens I reckon.

    So the labour government had nowt to do with the fact of the uks dire debt. Even Alistair Darling said a couple of days ago that if Labour got back into power they WOULD have put the VAT up :D
  • [Deleted User][Deleted User] Posts: 22,736
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    So you're not going to buy anything with VAT on?

    Only things i really need, shampoo, toiletries and fuel, things that are necessary to live (petrol is necessary for me, unfortunately)

    Other than that no. I am fed up of buying things I do not really need. I am going to try to save my money.
  • TommyGavin76TommyGavin76 Posts: 17,066
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    Only things i really need, shampoo, toiletries and fuel, things that are necessary to live (petrol is necessary for me, unfortunately)

    Other than that no. I am fed up of buying things I do not really need. I am going to try to save my money.

    No chocolate and soft drinks either then?
  • [Deleted User][Deleted User] Posts: 4,458
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    TCD1975 wrote: »
    Funny how when the VAT rate was cut down to 15% to boost the economy everyone whinged that the change was so small they wouldn't notice any difference. Brits love a good moan whatever the story.

    How true your statement is :)
  • [Deleted User][Deleted User] Posts: 22,736
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    No chocolate and soft drinks either then?

    Chocolate, crisps, cake nah i am on a diet:D

    Also I have no need for new clothes, house things mobiles, computers etc

    Maybe squash then

    You see I used to squander money, in a disgusting fashion.

    I have gone from being constantly in the red to seeing how much I can save every month, the polar opposite to what I used to be.

    I would not say I am tight i just have no need to buy anything else. I have what I need now to live comfortably. I need to try and start thinking of the future.
  • SULLASULLA Posts: 149,789
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    WRONG

    red_outlaw wrote: »
    People seem oblivious to the fact that this is the legacy of the national debt that Gordon Brown and New Labour have left us with.

    So true:)
  • GrizzyDeeGrizzyDee Posts: 1,396
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    red_outlaw wrote: »
    People seem oblivious to the fact that this is the legacy of the national debt that Gordon Brown and New Labour have left us with.

    I don't care whose fault it is, actually. I just don't like having to live with it. I'd be saying and feeling the exact same things if it was Brown, Blair, Thatcher, Foot, Smith, Jones, or A. N. Other.

    It really does make my teeth itch when people assume I believe the state we're in all happened since May last year. :rolleyes:
  • MesostimMesostim Posts: 52,864
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    Just Conservatives trying to distract from the idealogical cuts they are making by playing their usual blame games.
  • SULLASULLA Posts: 149,789
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    Mesostim wrote: »
    Just Conservatives trying to distract from the idealogical cuts they are making by playing their usual blame games.

    They are not idealogical cuts. They are very necessary economic cuts.
  • tealadytealady Posts: 26,262
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    dmuk wrote: »
    Some are confusing VAT with inflation.

    Inflation is worrying, the VAT rise is not.
    Must have missed that bit where RPI, RPIX, CPI were calculated net of vat and ad valorum taxes.
  • pocatellopocatello Posts: 8,813
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    Mesostim wrote: »
    Just Conservatives trying to distract from the idealogical cuts they are making by playing their usual blame games.

    Head in the sand labour apologist trying to pretend you didn't spend your way into this disaster, and now pretend that there are solutions that involve magic money trees rather than responsibility and a bit of pain.
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