Budget - beer up 1p

Yes, so once VAT, mark-ups etc. are applied it will be an extra 5p a pint in the pub :-(

In article , PeterE writes

Our club is putting it up 6 pence next Monday, the brewers got theirs in first.

Mike

Why does it never go up by 1p in the pub?

Lets make it 10p to make it easier

Yes, usually carefully timed to look like the budget increase rather than the money grubbing big brewers increase. (Note that few of the small brewers will actually put anything on other than the tax and some absorb that)

Why does cider always get such a good deal over beer? They are both English, 'volume' drinks. I've never understood why an 8.4% cider should be cheaper than a 4.0% beer.

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I would suggest no one really drinks it in the volumes required and so it would be taxed out of existence otherwise.

--------- Tax, the folly of those who have, against those who have not!

So called 'white cider' the acoholics drink of choice is presumably sold in reasonable volumes

-- Regards The Ale Fan

The ISP for the real ale fan.

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In message , k wrote

Don't forget the stealth tax that is already in the pipe-line. The cost to publicans for the local council to administer and police the binge drinking 24 hour opening initiative is going to introduce another 50p to the price of a pint.

In article , Alan writes

The budget 1p per pint was a bit of a con job, as I said elsewhere the brewers had already got there first, my club kept the increase down to

6p, at least 17.5% of that would go to the Scottish highwayman, it's the same with petrol, he rakes in vast sums in tax every time the price goes up, no wonder the thieving little shit can postpone an increase in fuel duty.

Mike

"at least 17.5% of that would go to the Scottish highwayman"

By 17.5%, I suppose you mean VAT, in which case the amount owing to HMCE is 17.5% of the net selling price less 17.5% of the net purchase price.

Not so. The brewer will charge VAT to the licensee and send it to HMCE. The licensee charges VAT to the customer , deducts what has already been paid to the brewer and sends the rest to HMCE. The Treasury collects the lot of course .

I don't know about you, but *I* think Jeff knows *exactly* how much the licensee[1] charges the customer and how much the licensee pays the nice VAT man.[2]

[1] At least what one specific licensee charges the customer and how much of it is VAT [2] Despite all the comments those tax people can be very pleasant and charming despite the tendency to do a "grumpy old men" routine (or at least the one I'm thinking of can).

That is what Jeff said. The sales VAT minus purchase VAT applies all the way down the chain - aside from any non-registered businesses in the supply chain, who don't charge sales VAT and therefore can't reclaim purchase VAT.

Of course. IIRC there was a documentary (or a study) a few years ago which followed a "nominal 1GBP coin" through from issue via all the businesses & people it (theoretically) passed through. ISTR that something like 78% of it ended up in the Treasury by the end of 1 year :(

FWIW everything in the local here went up by 10-15p last week and he hasn't had a real ale (decent or otherwise) on for almost a year. Last time he did, we drank it in a few days ;-)

No. VAT is charged on the WHOLE amount , not the difference between the purchase price and selling price , it is collected from everyone who sells the beer from the brewery on. It is collected in stages , the brewer , middlemen and licensee reclaim their share but the customer pays the lot. So 1p becomes 1.175 pence........in fact it's more than that because you only get 95% of a pint anyway........

Drivel.

"No. VAT is charged on the WHOLE amount , not the difference between the purchase price and selling price ,"

I still don't think you understand it.

Yes, VAT is chargeable on the whole amount, BUT IT IS ALSO RECLAIMABLE at 17.5% from the purchase price (presuming VAT applies).

JP

Tell it like it is, Jeff! :))

KeithS

Jeff Pickthall wrote: [...]

All that's being reclaimed is the VAT paid by the supplier. Apart from generating more paperwork, the net effect is that there is no VAT on B2B transactions and a single 17.5% VAT levy is applied to the final purchase price by the consumer.

I wonder, is White Lightning considered to be fuel and so only attracts 5% VAT? ;)