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Delay to the £400 road tax???


mouldie

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I've bad mouthed this government for a long time, but as a prospective first time home buyer and a prospective zed owner, they are starting to grow on me!

 

I just read that as of 2010 the road tax on the worst polluting cars will go up by UP TO £30 a year. So £400 road tax may be a fair while off yet(that statement will probably come back to bite me!).

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Dont scratch to far for the real facts though. Vat down to 15% but increase the fuel tax so nothing back there. Always good for politicians facing a drubbing in an election to promise things for after the next election knowing that they probably wont be in power when they are due in.

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This pre budget has done naff all of any use.

 

15% VAT - well, I assume that they "intend" for retailers to pass this on. Of course we know this wont happen. The margins will just increase on products to keep the price points on items. i.e. the retailer will still sell something for X.99 whether its got 15% VAT or 17.5%, the profit margins will shift to leave the ticket prices unchanged.

 

In the process he has created a massive headache for small businesses on invoicing and accounting, which will only be repeated in Dec 2009 when it goes back again. Oh and the duty increase that has been put in to ofset the VAT reduction on alcohol, tobacco and fuel will remain in place when the VAT level returns back to 17.5% in a years time, sneaky way of getting more duty in under the radar.

 

The national insurance increases will effectively tax every worker and business, instantly adding 0.5% to the entire wage bill, and taking another 0.5% of the employee too.

 

Top earners on £150k+ to be taxed at 45%. Well only if those earners take that money as salary, those who are able to take it as dividends will be able to circumnavigate that pitfall, until of course Mr Darling dicks about with the dividend tax rates - which you can just see is coming next.

 

This is nothing more than a few headline grabbing measures pupose built for the sun readers "tax up for the super rich" and "2.5% price cut", (when actually its 2.13 but anyway), just so they get voted in for another term and try to jiggle it again, or if they dont - the tax bomb will go off under a new administration.

 

Im starting to think a chipanzee with a calculator could outsmart this clown we have at the helm.

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Chris, don't forget that the VAT reduction hasn't had an impact on fuel, and they've raised duty on fuel. The problem being that manufacturers could claim back the VAT, they can't claim back the duty. So he's just made all manufactured goods 2.5% more expensive to move around, so wait....... that'll offset the VAT cut won't it? Numpty. :dry:

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