Pre-budget Report

[Tobleronie]

err, run that one by me again!

 

As a company you can claim back the VAT - at the moment you buy fuel at £100 plus stated VAT at 17.5% you only pay £100 and the VAT you claim back - they have raised the amount of duty on fuel to compensat efor the lack of VAT they will receive, so the business owner ends up paying more:

 

 

at the mo - bill at the pumps £117.50 - 17.50 claimed back from vat £100 net cost

from 1st December fuel bill still £117.50 only £15.00 claimed back from vat so therefore net cost £112.50 so every business is going to be affected by this, all delivery charges will go up so how does that help the economy

[krusewalker]

so that doesn't change for the price for the private car driver at the pumps then?

we dont get the extra 2 p tax if we arent a private company?

[Nettie]

As a company you can claim back the VAT - at the moment you buy fuel at £100 plus stated VAT at 17.5% you only pay £100 and the VAT you claim back - they have raised the amount of duty on fuel to compensat efor the lack of VAT they will receive, so the business owner ends up paying more:

 

 

at the mo - bill at the pumps £117.50 - 17.50 claimed back from vat £100 net cost

from 1st December fuel bill still £117.50 only £15.00 claimed back from vat so therefore net cost £112.50 so every business is going to be affected by this, all delivery charges will go up so how does that help the economy

 

Mindy, £15.00 from £17.50 = £2.50 therefore the net cost will be £102.50 not £112.50.

 

 

so that doesn't change for the price for the private car driver at the pumps then?

we dont get the extra 2 p tax if we arent a private company?

 

 

Yes private car owners will also be paying an extra 2p per litre. As of the 1st October 2007, 53.65 pence per litre for ordinary unleaded petrol was tax, so now it will be 55.65 pence tax, the rest the actual cost of the fuel.

 

Fuel tax info taken from http://www.petrolprices.com/fuel-tax.html

Edited November 25, 2008 by Nettie

[krusewalker]

Yes private car owners will also be paying an extra 2p per litre. As of the 1st October 2007, 53.65 pence per litre for ordinary unleaded petrol was tax, so now it will be 55.65 pence tax, the rest the actual cost of the fuel.

 

Fuel tax info taken from http://www.petrolprices.com/fuel-tax.html

 

hi nettie, as you seem to be in the know.

i noticed petrol didnt go up that 2p 1st october.

last nite i got fuel for 86 p

 

im curious, does this mean:

 

a) petrol firms swallowed the VAT themselves

 

or

 

b) 2p VAT was added, meaning my fuel would have been 84p?

 

cheers nettie

[blackmagic]

When VAT was reduced, fuel tax was increased to keep the price of fuel the same. i.e. cost came down 2p due to reduction of VAT but then went up 2p due to increase in fuel duty. So there was no change in the price of fuel at the pump.

 

Companies who can claim VAT back can now only claim back 15% of the cost , instead of 17.5% of the cost, so they are paying 2p more than they did before the budget.

 

You are paying the same as you would have before the VAT reduction and fuel duty increase. NO win, no loss.

 

The subsequent reductions in price are due to the cost of a barrel of oil reducing.

[krusewalker]

thanks for that blackmagic

 

[ranirottie]

it all baffles me tbh, I just fork out what I am asked for and moan about it after. Things are getting really tight here and i can rarely afford to use my car. In fact we have been talking about getting one car to share but that means i will be stuck indoors all week. Why do motorists get punished every single time. x