The dreaded VAT increase

It’s strange how the government works out taxation or is it?

You buy something you pay Vat on it, you sell it later to a dealer who then sells it on again and charges the next owner Vat again. That owner then sells the same item on again to another dealer who then sells it on yet again and the next purchaser pays Vat. So the government gets Tax from every purchaser as long as it is sold via a dealer but NOT if it’s a private sale or via commission.

The dealer can charge two ways he can charge you full Vat on the whole price or only on the profit they make from that sale. It depends on how they keep their records. There is no obligation for the dealer to tell the customer at the outset which method of Vat they are using. So it’s best to ask the dealer which method of Vat he is using prior to the purchase it may save you some cash.

No doubt there will be a big rush for people to buy before the Vat increase in the New Year. So would it be better to buy a second hand motor home or caravan privately and avoid the Vat in the first place.

Will dealers absorb the Vat rise?   Hmmm…. Don’t think so.

Will the government stop robbing us blind?   Hmmm….Don’t think so.

Will there ever be an honest politician?   Hmmm…..Pig's might Fly.

On a positive note the new buyers came and measured up yesterday so it looks as if everything is going through OK at their end, so we are still waiting for the call to go and exchange contracts.

Guess what we’re doing this Sunday?

You got it CAR BOOT,

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