I don't get VAT!

[wanacoop]

I am getting wed next year and getting a few things a little cheaper due to the 15% VAT, but I am trying to pay for the marquee now, or at leat deposit due to the low VAT, but the company won't accept payment until Jan..

..sneaky gits, as I have just found out thats when the VAT goes back up!

2 questions:

1- Who gets the extra 2.5%? The government? Or the Marquee company?

2- If I paid the deposit now(with 15% VAT) would the total cost be at 15% next year, or would it be 17.5% anyway??

Hope someone can explain this to my thick head!

Cheers.

[P924]

wanacoop said:

I am getting wed next year and getting a few things a little cheaper due to the 15% VAT, but I am trying to pay for the marquee now, or at leat deposit due to the low VAT, but the company won't accept payment until Jan..

..sneaky gits, as I have just found out thats when the VAT goes back up!

2 questions:

1- Who gets the extra 2.5%? The government? Or the Marquee company?

2- If I paid the deposit now(with 15% VAT) would the total cost be at 15% next year, or would it be 17.5% anyway??

Hope someone can explain this to my thick head!

Cheers.

1. The Government

2. Depends, when the invoice is raised, and if the invoice is for the full amount or just deposit.

[Rich135]

The company have to look at when the actual service will take place, and that is in 2010, so the company will have to charge you 17.5% on the entire bill even if you pay a deposit now - they have no choice but to do that, otherwise they face very hefty fines, and HMRC (vat man) are very hot on this.

The marquee company stand to make no gain, just won't get fined by HMRC.

[wanacoop]

thanks for the help guys! Oh well, 17.5% it is..(bloody weddings)

[tonyvid]

If you think the extra 2.5% is expensive just wait for the divorce costs!

[Eric Mc]

Don't wait until after the General Election either. VAT at 22% anyone?