[terrymaloy]

Was just wondering because of the VAT increase, have you put your prices up ?

[Adam P]

at a guess i'd say everyone is still charging the same prices e.g. £40 for living room, then plus whatever vat is at, so customer will see an increase of 2.1% but the cleaners price will still bee the same.

[richy27]

i dont think th 2 % increase will effect prices too much but prices should but prob wont rise with the increase in fuel and other direct costs.   

[clinton]

I think a lot of companies will absorb the increase in some case spec with small purchases.

Same prices really for me so wont be an increase for me here.

[Griffus]

Charge = Price + VAT

VAT has always made getting domestic custy's harder but I doubt the increase will affect this either way.

[garyj]

at a guess i'd say everyone is still charging the same prices e.g. £40 for living room, then plus whatever vat is at, so customer will see an increase of 2.1% but the cleaners price will still bee the same.

Do you give your domestic customers a price then add the VAT?  ( It's 2.5% BTW not 2.1)

[Adam P]

£100 plus vat etc.

it's a 2.1% (or there abouts) difference btw not 2.5%

[garyj]

Maths isn't my strong point, can you please explain to me simply? Cheers

[Adam P]

The increase will see the rate rise from 17.5% to 20% - meaning an extra 2.13p added ito products that had previously been sold for £1.

http://news.sky.com/skynews/Home/Business/VAT-Increase-25-Percent-And-Rises-To-20-Percent-Chancellor-George-Osborne-Hopes-For-Budget-Deficit/Article/201101115879089?f=rss

remember you can't just add another 2.5% to your prices to work out the increase. you need to remove the vat, so take 17.5% off your current total, then add 20%. the increase should be around 2.1% (i hope)

[Mike Halliday]

priced £100 vat @ 17.5%  = £ 117.50p

price £100 vat @ 20% = £120

The actual difference that the customer pays is 2.1%........I think

is that what adam is basing his figures on ?

[Mike Halliday]

adam answered as i was typing

[Matt Seymour]

While the VAT increase doesn't make a particularly significant difference in real terms given the prices in this industry, it's the psychological effect of the increase that worries me.

People will now naturally feel a sense of dread when they hear anyone mention "VAT"

I wouldn't want to be charging VAT at the moment.

[garyj]

Don't get it!

120/117.5 x 100 = 102.127.

An increase of 2.1 %

But its gone up 2.5, where is the missing .4 

[Doctor Carpet (Ret'd)]

117.5 is 97.9% of 120 - the difference is 2.1

VAT has increased by 2.5 percentage points but is in fact an increase of 14.28%

The old fraction for extracting VAT from a VAT+cost figure was 7/47. This has now changed to 1/6.

The are lies, damn lies and statistics.

My brain is now hurting.

Rog

[Ian Rochester]

Is this a maths class or what!

[Dave_Lee]

Or a simple explanation:-

Vat has increased by 2.5% meaning that the overall Vat INCLUSIVE price has increased by 2.1%

Dave.