2.12765% off - or not.

barcode · Mon 24 Nov, 2008 19.11

Sput wrote:Oh good, I thought I'd missed some detail about the proposals!

Barcode, 2% of 55p is 1.1p. Show your working and I'll get the red pen!

calculator going in the bin!

Nick Harvey · Mon 24 Nov, 2008 19.15

barcode wrote:calculator going in the bin!

Had you considered that the calculator might work perfectly if you bother to put the digits in in the correct order?

Even if you do the calculation completely WRONGY, as the layman without experience of calculating VAT on a regular basis is likely to do it, you get:

55 minus 17.5% plus 15% equals 52.18125 which STILL isn't 51p.

Alexia · Mon 24 Nov, 2008 19.16

rdobbie wrote:I think we can safely assume that Poundland won't be passing on this VAT cut to its customers. So their profits look set for a very tidy windfall indeed.

(Unless they do actually change all their signage and POS to "EVERYTHING'S 98p!" and fill their tills with massive quantities of 2p coins to give out in change, but I can't see it somehow)

What about The 99p Store? Will it become The 97p Store?

http://www.99pstoresltd.com/

bilky asko · Mon 24 Nov, 2008 19.51

Alexia wrote:
rdobbie wrote:I think we can safely assume that Poundland won't be passing on this VAT cut to its customers. So their profits look set for a very tidy windfall indeed.

(Unless they do actually change all their signage and POS to "EVERYTHING'S 98p!" and fill their tills with massive quantities of 2p coins to give out in change, but I can't see it somehow)
What about The 99p Store? Will it become The 97p Store?

http://www.99pstoresltd.com/

Well I remember when the Poundworld had a half price sale - so anything could happen.

barcode · Mon 24 Nov, 2008 20.11

Nick Harvey wrote:
barcode wrote:calculator going in the bin!
Had you considered that the calculator might work perfectly if you bother to put the digits in in the correct order?

Even if you do the calculation completely WRONGY, as the layman without experience of calculating VAT on a regular basis is likely to do it, you get:

55 minus 17.5% plus 15% equals 52.18125 which STILL isn't 51p.

you are correct

Chie · Tue 25 Nov, 2008 01.54

BBC News wrote:Mr Darling says the cut - which comes into effect on Monday in time for the peak Christmas shopping period - will put £12.5bn into the pockets of consumers over the course of the 13 months it will last.

Which works out at £16 a month per person :roll:

Sput · Tue 25 Nov, 2008 08.16

Thanks, carol.

not-ShowbizGuru · Tue 25 Nov, 2008 18.33

Sput wrote:Thanks, carol.

His name is Richard.

Nini · Tue 25 Nov, 2008 19.02

Woosh.

all new Phil · Tue 25 Nov, 2008 19.16

I can't help wonder just what the point is of the reduction in VAT. For the amount it is costing in total, the difference per person is so minimal that it is hardly worth it. God knows how many billions so that we can save a tenner when we spend £400 - why doesn't Alistair Darling just issue everyone with a Tesco Clubcard instead?

I think there's a lot to be said for holding tight and just seeing it through. As I've mentioned before, if it helps wean people off borrowing and makes them think twice before they buy a 42 inch plasma for the downstairs toilet, then maybe we might just come out of it slightly better?

Gavin Scott · Tue 25 Nov, 2008 19.21

all new Phil wrote:I can't help wonder just what the point is of the reduction in VAT. For the amount it is costing in total, the difference per person is so minimal that it is hardly worth it. God knows how many billions so that we can save a tenner when we spend £400 - why doesn't Alistair Darling just issue everyone with a Tesco Clubcard instead?

Its very interesting. There was plenty of "out of pocket" talk when it went UP to 17.5%, so I wonder why it seems so paltry the other way. Hey ho.

The fact is, 2.5% of your annual spend will mount up - but whether it will get people spending is another matter.