VAT Increase

[Highland Forestry]

Ok Guys....been trawling google now for several hours and can't make head nor tail of the new VAT increase in connection to firewood.

 

My understanding is that VAT is increasing by 2.5% on January 4th 2011..

 

The current rate for VAT supplied to domestic customers is 5% - is this increasing to 7.5% or is it staying the same??

 

 

Cheers

 

 

Matt

[Steve Bullman]

its just standard rate vat thats increasing, i think reduced rate stays the same

[Highland Forestry]

Ahh cheers Steve... I was starting to get a bit worried as I don't want to put firewood prices up in January.

[John Russell]

its just standard rate vat thats increasing, i think reduced rate stays the same

 

Correct. From HMRC's website, QUOTE: "The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT."

 

http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-increase.htm

Edited December 31, 2010 by John Russell

[Steve Bullman]

dont take my word for it but i think im right. the last vat change only affected the standard rate.

[Highland Forestry]

Yep, having read Johns link that seems to be correct...

 

Cheers Steve, and John!

[dave fox]

yes but all the other things connected with processing fire wood that are vat related (20)% go up to!

[Highland Forestry]

yes but all the other things connected with processing fire wood that are vat related (20)% go up to!

 

I know

 

Looks like prices will have to go up a bit, but i'm hoping to hold mine until February

[dave fox]

use it as a selling tool,

[Justme]

 

Looks like prices will have to go up a bit, but i'm hoping to hold mine until February

 

Why? You can claim it all back.

 

The VAT increase should not impact retail firewood prices at all.