So VAT is reduced
November 25th, 2008 Posted in General
<sarcasm>
yay, woo, this will make me spend loads of money
</sarcasm>
So the government reduces VAT by 2.5 percent. So for every £1000 I spend, I will save a whole £25.
And for that privilage I will get to pay higher taxes in a years time, probably for the next 10 years.
Cant say im convinced.
I’m just waiting for all those systems with a hard coded figure of 17.5% for VAT not being able to handle the change, it could be Y2K all over again.
Tags: vat
November 25th, 2008 at 2:10 am
Well, dividend tax is increased from 22.5% to 37.5% for “high income earners”, increasing marginal tax rates from 39% to 52%, the new 45% rate coupled with NI changes (which ALL taxpayers will pay btw) takes top marginal tax rate up from 41% to 61%.
Of course you may say “doesn’t affect me”, but neither did the 40% band when it was introduced. Inflation general pay rises coupled with lack of increases in allowances will make sure most of us pay 61% in 10-15 years time..
(and despite the talk of deflation, an inflation bomb of epic proportions is waiting a few years on)