VAT Reduction as of 1.9.20

mikeecho

So on Saturday the 1st September VAT drops to 21% from the current 23%

I hope everyone in the process of buying a new car reviews the price they have agreed with the main dealer.

Also, petrol/diesel should drop by ~2.5¢, can't see many forecourts being as quick to pass that saving on, unlike on budget night, where the increase is almost immediate.

Looks like I've jumped the gun and got my dates mixed up.
Thanks for those that corrected me.,
I've made a few changes to this post.

greasepalm

Must leave a note in office new vat rate 21% as used to charging out batteries at 23%

Miscreant

mikeecho wrote: »

So on Saturday VAT drops to 21% from the current 23%

I hope everyone in the process of buying a new car reviews the price they have agreed with the main dealer.

Also, petrol/diesel should drop by ~2.5¢, can't see many forecourts being as quick to pass that saving on, unlike on budget night, where the increase is almost immediate.

Would be nice to see some price drops alright but I won't hold my breath for fuel in my area to drop considering none of the local stations bothered to reduce their prices during lockdown.

cal naughton

Dates are wrong it's not coming in until September 1st.

Am going to pick up a new vehicle on Friday, will discuss this with the dealer tomorrow. Thanks

plhealy2000

mikeecho wrote: »

So on Saturday VAT drops to 21% from the current 23%

I hope everyone in the process of buying a new car reviews the price they have agreed with the main dealer.

Also, petrol/diesel should drop by ~2.5¢, can't see many forecourts being as quick to pass that saving on, unlike on budget night, where the increase is almost immediate.

Rate doesn't change until September 1st

sunnysoutheast

It's not changing until September 1st.

zzantara

So VAT goes down by 2% on August 1st.
Those buying straight should benefit by 2% on the price that they are paying, not 2% on the List Price.
Those trading in will probably see very little difference, while the list price of the Car they are buying reduces by 2% , the value of their Trade in also reduces by 2% so the "cost to change " will see very little change, the exception is where the trade in has very little value and is similar to a straight deal .

greasepalm

Ah sticky has landed on the floor now.

23%
VAT is charged at every stage of sale where the cost of an item is increased. The standard rate of VAT will be reduced from 23% to 21%, effective from 1 September 2020 to 28 February 2021. This was announced on 23 July 2020 under the July Jobs Stimulus Package. The current standard rate of VAT is 23%.

mikeecho

Oops..

I've edited the op