Maplin and their VAT policy.

  Arnie 15:17 02 Dec 08
Locked

I have just returned from my local Maplin store after asking what their policy was on the 2.5% VAT reduction.
The reason for my enquiry, was that their window prices were still showing almost everything ending with £x.x9.

I asked one of Maplin’s staff members if they were discounting the 2.5% VAT at the till.
To my surprise he told me that Maplin were keeping the VAT and not passing it on.
I made it clear that I did not have any issues with him, but that their policy was disgraceful.

I have checked in Tesco’s local store, on the Internet with PC World, Currys, CCL Computers, Novatech and *Screwfix to name a few. All these companies have reduced the 2.5% VAT element on their products.
* Screwfix (my local store,) now supplies many, TV, IT, electrical and satellite products at very competitive prices.

Why would Maplin who already charge well over the odds for most of their products, want to treat their customers in this way?

Maybe one of their staff may like to comment on the forum.

  Condom 15:53 02 Dec 08

VAT is required to be charged at the legal level no matter what it may be. The legal level is now 15% and that is all Maplin may charge.

However they are entitled to change their prices upwards or downwards as they see fit and if their prices have not reduced then they have added 2.5% to their prices.

  Arnie 16:12 02 Dec 08

Thank you for your reply.

"The legal level is now 15% and that is all Maplin may charge."

I did think this was the case.
Only time will tell if Maplin have shot themselves in the foot. They should realise that they're trading in a very competitive market.

I have already destroyed my discount vouchers I was sent recently. Most of their items were cheaper elsewhere.
Now they are charging what is overall something like a 5% price increase compared with some of their competitors.
A very brave company indeed!

  spuds 16:18 02 Dec 08

Some companies reduced their vat last Friday, and others should have followed by Monday. But I have noticed that some companies have been juggling some of their prices around, with possible increases in some cases.

  wee eddie 16:27 02 Dec 08

Where prices are quoted and Local Taxes added at the Till.

Here the quoted price is what you pay.

So there is no real reason why the price should be altered in any way. The shop will make a slightly increased profit, but as many of them are discounting their prices anyway, I can see little reason for all this moaning.

  BT 16:38 02 Dec 08

I heard someone on TV over the weekend saying that its not compulsory to pass on the VAT reduction to the general public. I assume that its only compulsory between businesses and the Tax man.

You can bet however that when it goes back up the prices will reflect it instantly!

  anchor 16:42 02 Dec 08

I dined at a Harvester restaurant last evening and the prices were reduced by the appropriate amount.

Shame on those companies who use the reduction to make a larger profit. This was not the governments intention.

  beeuuem 16:55 02 Dec 08

Alistair Darling reduced VAT by 2.5 per cent but icreased the duty on fuel,alcohol and tobacco so that he is actually taking more of the overall price than before the reduction in VAT. Businesses can reclaim the VAT but not the duty. Mr Darling has thus effectively increased their fuel price by over 2p a litre. And his prices were worse than Maplins!
I suspect that quite few businesses will not pass on the VAT reduction. Many retailers are making much of the 15% VAT rate in their advertising. It doesn't automatically follow that their prices have come down, so maybe Maplin are just more being honest than some.
And I haven't noticed pound shops suddenly becoming 98p shops :-))

  BT 17:25 02 Dec 08

Saw a woman in LIDL yesterday making a big fuss about the VAT reduction on a Pot Plant. The sign said the reduction would be applied at the till and she was being most adamant that she got it. Can't have amounted to more than a few pence.

  Arnie 17:28 02 Dec 08

"Shame on those companies who use the reduction to make a larger profit. This was not the governments intention."

I couldn't agree more.

  Arnie 17:42 02 Dec 08

"And I haven't noticed pound shops suddenly becoming 98p shops"

Of course not, because it would cost a fortune to change all their window stickers and signs.

Anyway, I know they sell some tack but but some real bargains are to be found. Their mini camera tripods are as good as some I have seen sold for six times the price.

Did you see the Belkin products on sale recently. At those prices I am not going to cross swords for a few pence.
£1 - (2.13%) = £0.9787. So would they still be robbing me. (:0)

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