From 1 December 2008 the rate of VAT is being cut to 15%. The cut will last for 13 months until the end of 2009. It means a £1,000 Christmas shopping spree would cost a mere £25 less. But this calculator aims to show how much you would save over the term of the reduction - whether you maintain your spending or spend for Britain.
=4; return (b_ok); } function getPeriod(periodType){ period = 13; //months if (periodType == "week") return (52/12) * period; if (periodType == "month") return period; if (periodType == "year") return period/12; return new Number(period); } function getWeeklyReduced(){ p = getPeriod("week"); var food_bill = new Number(document.f1.food_bill.value) * p; var weekly = new Number(0); weekly = food_bill; return weekly; } function getWeekly(){ p = getPeriod("week"); var alcoholic_drinks = new Number(document.f1.alcoholic_drinks.value) * p; var takeaways = new Number(document.f1.takeaways.value) * p ; var weekly = new Number(0); weekly = alcoholic_drinks + takeaways; return weekly; } function getMonthly(){ p = getPeriod("month"); var clothes = new Number(document.f1.clothes.value) * p; var eating_out = new Number(document.f1.eating_out.value) * p; var petrol = new Number(document.f1.petrol.value) * p; var general = new Number(document.f1.general.value) * p; var monthly = new Number(0); monthly = clothes + eating_out + petrol + general; return monthly; } function getPetrolTax(){ p = getPeriod("month"); var petrol = new Number(document.f1.petrol.value) * p * 0.025; return petrol; } function getAnnualReduced(){ p = getPeriod("year"); var holidays = new Number(document.f1.holidays.value) * p ; var annual = new Number(0); annual = holidays; return annual; } function getAnnual(){ p = getPeriod("year"); var building = new Number(document.f1.building.value) * p ; var car_maintenance = new Number(document.f1.car_maintenance.value) * p; var electrical_goods = new Number(document.f1.electrical_goods.value) * p; var furniture = new Number(document.f1.furniture.value) * p; var one_off = new Number(document.f1.one_off.value) * p; var annual = new Number(0); annual = building + car_maintenance + electrical_goods + furniture + one_off; return annual; } function trunc(formElement){ var sValue = formElement.value; if (sValue == "NaN") sValue = 0; formElement.value = Math.round(sValue*100)/100; } function update(){ spending = getWeekly() + getMonthly() + getAnnual(); lowvat_spending = 0 + getWeeklyReduced() + getAnnualReduced(); old_vat = ((spending + (lowvat_spending * 0.02)) * (17.5/100)); new_vat = ((spending + (lowvat_spending * 0.02)) * (15/100)); document.f1.total_spending.value = spending + lowvat_spending; petrol_tax = getPetrolTax(); document.f1.old_vat_bill.value = old_vat; document.f1.new_vat_bill.value = new_vat; document.f1.new_petrol_tax.value = petrol_tax; document.f1.annual_saving.value = old_vat - new_vat - petrol_tax; trunc(document.f1.total_spending); trunc(document.f1.old_vat_bill); trunc(document.f1.new_vat_bill); trunc(document.f1.annual_saving); trunc(document.f1.new_petrol_tax); return false; } //-->
The rate of VAT will be reduced from 17.5% to 15% for 13 months from 1 Dec 2008 to end December 2009. How much could you save? Weekly
Food bill £ Alcoholic drinks £ Takeaways £ Monthly Clothes £ Eating out £ Petrol £ General/other £ Annual Holidays £ Building/home repairs £ Car maintenance £ Electrical goods £ Furniture £ One-off major purchase £ Assumptions: » Only 2% of spending on food and holidays attract VAT. » The VAT cut on petrol was offset by a rise in duty so there are no savings. This stealth tax is highlighted in a separate box. » VAT cut on alcohol, offset by rise in duty, not deducted. » Annual spending has been rebased over 13 months. SUMMARY Total spending over 13 months £ Old VAT bill £ New VAT bill £ New petrol stealth tax £ Total saving over 13 months £Different rates of VAT apply to different goods and services. There are currently three rates - the standard 17.5%, a reduced rate charged at 5% and zero rate. VAT could be theoretically applied to the goods in the latter category, but the Government chooses not to do so at present. There is a separate category of items, known as 'exempt', which are not covered at all by the VAT regime. They have been kept out for various historical reasons.
Reduced-rate items
Domestic fuel and power Installation of energy-saving materials Residential conversions Women's sanitary products Children's car seats
Zero-rated items
Food - except meals in restaurants and hot takeaways Books and newspapers Children's clothing and shoes, public transport.
VAT exempt
Insurance Providing credit Some education and training Fundraising events by charities Subscriptions to membership organisations Betting and gaming