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VAT Reduction To Come?

Virgil van Bike

Virgil van Bike

VIP Member
Messages
126
Location
Leicestershire
Vehicle
T6.1 Ocean 150
Just spotted this in the Daily Mail.
www.dailymail.co.uk

Rishi Sunak plans VAT cut to kickstart economy amid coronavirus chaos

Amid fears many businesses face going bust due to the fallout from lockdown, Chancellor Rishi Sunak has ordered officials to draw up options for cutting the sales tax in the coming months.
www.dailymail.co.uk www.dailymail.co.uk
No date when this may kick in, but hopefully soon. Could be a double saving for new buyers what with the VED saving as well.
BTW I don’t buy the Daily Mail, just log on for the side-bar of shame o_O
 
Last edited:
Call me cynical but any journal with a spelling mistake in the headline causes me to think it's guff before I even read it!

"The UK is facing the worst recession in 300 year due to coronavirus lockdown"
 
Call me cynical too, but have you seen this post.
post #16 is where he got busted, it just shows that you
can't believe all that you read.
vwcaliforniaclub.com

Ready for blast off

https://www.dailymail.co.uk/news/article-8180109/amp/Petrolhead-revamps-classic-VW-camper-fighter-planes-jet-engine.html
vwcaliforniaclub.com vwcaliforniaclub.com
 
westfalia said:
Call me cynical too, but have you seen this post.
post #16 is where he got busted, it just shows that you
can't believe all that you read.
vwcaliforniaclub.com

Ready for blast off

https://www.dailymail.co.uk/news/article-8180109/amp/Petrolhead-revamps-classic-VW-camper-fighter-planes-jet-engine.html
vwcaliforniaclub.com vwcaliforniaclub.com
Click to expand...
I think it’s a question of when, by how much and for how long rather than if, as it’s not just the one rag reporting it.
Awaiting my T6.1 so I’m hopeful rather than cynical!
 
I think a 3-5% VAT reduction will come in to boost sales, this will offer an opportunity on VAT qualifying cars in the UK ( demonstrators, new cars, ex rental or lease) and those for sale in the EU too as often you can buy there net of VAT and then pay the lower UK VAT
 
Tomato said:
I think a 3-5% VAT reduction will come in to boost sales, this will offer an opportunity on VAT qualifying cars in the UK ( demonstrators, new cars, ex rental or lease) and those for sale in the EU too as often you can buy there net of VAT and then pay the lower UK VAT
Click to expand...
Germany goes from 19 to 16% vat from July till end of December.
 
Calif-Onion-cation said:
Just spotted this in the Daily Mail.
www.dailymail.co.uk

Rishi Sunak plans VAT cut to kickstart economy amid coronavirus chaos

Amid fears many businesses face going bust due to the fallout from lockdown, Chancellor Rishi Sunak has ordered officials to draw up options for cutting the sales tax in the coming months.
www.dailymail.co.uk www.dailymail.co.uk
No date when this may kick in, but hopefully soon. Could be a double saving for new buyers what with the VED saving as well.
BTW I don’t but the Daily Mail, just log on for the side-bar of shame o_O
Click to expand...
When does the new saving come into play and how much is that?
 
mattsurfsgood said:
When does the new saving come into play and how much is that?
Click to expand...
Latest info I can find;
The Chancellor has ordered Treasury officials to produce plans for slashing VAT in a bid to get the economy moving as restrictions continue to be eased, the Sunday Times has reported.
And the paper reports Mr Sunak could use a major speech on the economy, planned for early July, to announce measures such as a significant cut to the 20% headline rate of VAT, as well as introducing a zero-rating on some products to boost spending.
 
May also be a 6k scrapage scheme if buying a new EV
 
willwander said:
May also be a 6k scrapage scheme if buying a new EV
Click to expand...
Interestingly, found this on the Autocar website;
Speaking recently, Volkswagen sales boss Jürgen Stackmann said that the "automotive industry can be a powerful driver to help" boost the economy. But he added that any incentive scheme should not be focused purely on electric vehicles because of their relatively low sales.
 
This proposal (and at time of writing it’s only a HMT wet dream) combined with the recently revised VED rates makes buying new look attractive when one looks at some of the used prices being bandied about (caveat - order a new Cali now and there’s no guarantee you’ll get it before the VAT reduction - if any - is reversed).

From what I’ve heard demand for leisure vehicles has gone through the roof in the past couple of months and prices reflect demand. Saving £1k here (VED) and £1k there (VAT) is irrelevant if the base cost keeps rising because there’s a queue forming outside your favourite VW Commercial dealer.
 
Tomato said:
As VW‘s T2 retro replacement is an EV, IMHO they’ll bring forward production.
Click to expand...

Where would they get the battery supply from?

The legacy automakers are so far behind, I doubt it’s something they can just decide to move forward.
 
Tomato said:
True about battery supply but I think legacy makers will catch up and leave Tesla trailing in their wake
Click to expand...
I read an MIT dissertation several years ago ....the alleged Tesla strategy was to provide cell technology to the other mainstream manufacturers when they realised they couldn’t play catch up. Sounds a reasonable bet but who knows whether it’s true?
Mercedes hedged their bests with a substantial ownership of Tesla....
 
Big Ron said:
I read an MIT dissertation several years ago ....the alleged Tesla strategy was to provide cell technology to the other mainstream manufacturers when they realised they couldn’t play catch up. Sounds a reasonable bet but who knows whether it’s true?
Mercedes hedged their bests with a substantial ownership of Tesla....
Click to expand...

Volkswagen News and Reviews | InsideEVs

Get the latest on new Volkswagen models including spy shots, first drives, in-depth reviews, concept car photos, new features and more.
insideevs.com insideevs.com

Interesting article here, VW already have a joint venture with Northolt, but are investing significantly elsewhere, so hopefully healthy competition to Tesla.
They're now pushing the ID-3 which has significantly increased range to the 125 mile e-golf, but personally I can’t see an electric Cali in the short term, it’s back to that ‘niche’ market thing again.
 
Tomato said:
True about battery supply but I think legacy makers will catch up and leave Tesla trailing in their wake
Click to expand...
It’s not just batteries. It’s software.

Tesla has a huge lead in software, 10 years or more. This will take a lot longer to catch up with.

An increasing proportion of a car is software. VW has big software problems. just look at the new control panel and dash on the 6.1
 
I think the USA would see significant sales of a T2 EV, they haven’t had Cali’s, my experience with Tesla is through friends not personal ownership and it is mostly an ugly picture of poor quality and constant gremlins...we’ll have to wait and see what VW can do and will do...
 
willwander said:
It’s not just batteries. It’s software.

Tesla has a huge lead in software, 10 years or more. This will take a lot longer to catch up with.

An increasing proportion of a car is software. VW has big software problems. just look at the new control panel and dash on the 6.1
Click to expand...
VW have just announced that they are taking Software development Inhouse with a big manpower investment, mainly in Germany but also elsewhere, China and India plus others. One base software platform across the range is the goal, 2025 mentioned as the goal. Management speak now puts Politicians to shame in making words convey nothing.
 
@B J G VW brought software in-house sometime ago. The ID3 and Golf v8 problems (mainly software related) cost Herbert Diess his job as VW CEO a couple of weeks back (although oddly he keeps his role as group chief).

Back to topic though - does anyone think in the current climate new vehicles will be included in any VAT reduction? I suspect not.
 
No longer being an EU Member frees up the UK Chancellor to do as he thinks fit.

with a very small UK car production base any VAT reduction would benefit other Nations more.

VAT cuts on the hospitality front would be a distinct possibility.
 
@B J G VAT is a UK controlled tax (always has been without EU interference) on goods sold (not necessarily manufactured) in the UK. Any tinkering with VAT doesn’t benefit any one overseas nation, unless they are sole supplier of a particular product, which amazingly becomes more in demand in a lower sales tax environment.

I agree it makes sense for a cut in the tax especially for the likes of hospitality etc. However I doubt that will translate to a reduction in your bill at Prezzo, Wagamama and the like.

The idea of a VAT cut is to encourage us to spend what we did before Covid, not to make savings on what we did buy.
 
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