VAT increase on equipment?

Of course it will be increased on camera equipment.
If you think about it though it is only ann extra £2.50 for each one hundred punds so the price increase on a £500 lens would only be £12.50.

Not that great really.
 
If you are VAT registered then it won't make any difference to you.

If not, then a lens costing £500 including VAT before the increase will cost £510.64 after the 4th Jan.
 
PsiFox said:
Of course it will be increased on camera equipment.
If you think about it though it is only ann extra £2.50 for each one hundred punds so the price increase on a £500 lens would only be £12.50.

Not that great really.
Click to expand...

Not even that much. The difference is only £2.13 for every £100 of pre-increase price.

You can usually save more than that just by shopping around.
 
I'm not actually expecting prices to change by the VAT increase.

E.g currently if an item is £499.99, the new price would be £510.63.

Shops won't sell it for this price. There is a reason that it is £499.99 (the old trick of trying to make you think it is £400 something, when really it is £500).

I'd expect shops to take a hit on some items e.g. the above might still be £499.99 (with shops taking a £10 odd hit on their profit), but others will be priced higher e.g. if it was the above I'd probably expect it to be £519.99 or £529.99. It definitely wouldn't be £510.63
 
I don't recall the VAT cut from 17.5% to 15% making a huge difference two years ago, but you can bet retailers will add 2.5% on. And probably round it up it up a bit...
 
cheers guys, yeah I thought it would have affected the equipment costs, so I'm guessing the best time to buy is between Christmas and new year then because there will be the after Christmas sales plus shops like to have offers on before the VAT increase so I might be able to save myself a bargain :D
 
Depends on the retailer. I have a suspicion that some (Dell springs to mind) may hold the retail prices for a few weeks at pre-rise prices. For business buyers and the self-employed this could lead to nett decrease in price for those weeks. I can't see myself rushing to buy something I don't definitely need just for 2p in the pound.
 
The best time to buy is whenever you have the money spare and won't be left a bit short if you spend it.

Not sure that there are going to be significant price reductions between christmas and new year - and if there are, they'll only be on items that the retailers have overstocked on in the hope of selling them before christmas, so expect it to be more entry level DSLRs than fast teles.
 
I'm quite happy at the minute actually because I was after a Sony 35mm f1.8 and Jessops had it for £179 and then next thing I know it's being sold for £153 :O I think I might get it next weekend because it's my birthday on the 11th and so I might buy it :D
 
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