If you thought retail giants were all just money grabbing b***s, then Monday’s VAT reduction could just prove you wrong. Because Register Hardware’s found that most will – contrary to popular belief - pass the 2.5 per cent saving on to you. But the discounts won’t amount to much. Think of it like this, when the government cut …
Still waiting till Monday
Online stores such as Wiggle, DSG (Dixons, Currys, PC World etc), Comet were quick to pass on the VAT rate (Amazon took a bit longer) - this was simply done by either the buyer typing in a coupon code or (as in DSG's case later on in the week) the coupon/voucher code was automatically applied at the check-out. This was good, but it did mean that you could not use another coupon code in conjunction with the new VAT rate. I'm waiting for Monday when their systems (hopefully) should be updated so that the main price reflects the new VAT rate and I can use a different coupon code to get even further savings.
Your maths is still up the creek, James
Prices are not dropping by 2.5%; only the VAT element is.
In the case of that Jabra headset, the ex-VAT element is £50 / 1.175 = £42.55 at the moment. Once VAT is 15%, the price including VAT will be £42.55 x 1.15 = £48.94, a saving of £1.06, not the £1.50 you state.
... saving of £1.06, not £1.25 [rather than £1.50]
- all a bit frazzled......
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