ICT AND VAT

[12th Man]

Should ICT really bother to pass on the 2.5p cut in vat which equates to around 2.13% off the usual price?

The money could go to youth development or help fund ie under 16s for ?5 matches instead.

[DJS]

Damned if they do and damned if they don't.

Fair play to them for making the effort I say.

[CaleyD]

You need to check your maths 12th Man.

[PullMyFinger]

You need to check your maths 12th Man.

He must work in Tesco.

[Yngwie]

I don't see the need to pass on the VAT saving. Surely if you are happy to pay ?20 to get in, you'll be even happier now that more of your ?20 goes to the club and less to the VAT man. And then in a year's time it all goes back up again, probably even higher than it was before.

Crowds certainly won't be boosted by a 43p price cut. (What's wrong with his maths btw?)

Will the caterers be taking 3p off a pie?

[Kirishima]

ICT cant just mug the money from the supporter without consultation.

For example, say Mike Smith went to Hawaii on a scouting mission, everybody would be suspicious

but seriously, if they arent going to drop prices then they have to say why they kept it and where it is being used.

[stevico1]

I don't see the need to pass on the VAT saving. Surely if you are happy to pay ?20 to get in, you'll be even happier now that more of your ?20 goes to the club and less to the VAT man. And then in a year's time it all goes back up again, probably even higher than it was before.

Crowds certainly won't be boosted by a 43p price cut. (What's wrong with his maths btw?)

Will the caterers be taking 3p off a pie?

To be fair to the club they would have been hammered by some if the did not pass on the VAT saving to the fans, I think it was the correct choice.

[Scotty]

ICT cant just mug the money from the supporter without consultation.

For example, say Mike Smith went to Hawaii on a scouting mission, everybody would be suspicious

but seriously, if they arent going to drop prices then they have to say why they kept it and where it is being used.

The club arent mugging anyone - they are reducing the prices in line with the reduction in VAT

http://www.ictfc.premiumtv.co.uk/page/News...1473219,00.html

[Caley Mad In Berks]

You need to check your maths 12th Man.

Care to elaborate CD? 12th Man's maths look spot on to me!

[Kingsmills]

Good for them. There must have been a temptation not to pass on this minor windfall.

[Scotty]

Should ICT really bother to pass on the 2.5p cut in vat which equates to around 2.13% off the usual price? The money could go to youth development or help fund ie under 16s for ?5 matches instead.

You need to check your maths 12th Man.

Care to elaborate CD? 12th Man's maths look spot on to me!

The math seems relatively fine, perhaps it might have been clearer if the poster had said 2.5p "in the pound" cut rather than 2.5p cut. On a ?20 ticket, thats 50p.

I must admit I did do a double-take on the 2.13% figure though? Surely 2.5% is 2.5% regardless of which ticket ?

Is there VAT on child tickets ?

[CaleyD]

Should ICT really bother to pass on the 2.5p cut in vat which equates to around 2.13% off the usual price?

The money could go to youth development or help fund ie under 16s for ?5 matches instead.

You need to check your maths 12th Man.

Care to elaborate CD? 12th Man's maths look spot on to me!

VAT on ?20 ticket at 17.5% = ?3.50

VAT on ?20 ticket at 15.0% = ?3.00

That's a 2.5% or 50p reduction the club are looking to pass on...not 2.5p or the 2.13% stated by 12th Man.

On the discussion of whether or not they should be passing it on, then as some have said...the club are in a no-win situation. They have decided that they will pass on the saving. However, I also think that they should perhaps put donation boxes on the turnstiles and give people the option of giving that saving back to the club. That keeps everyone happy.

[Yngwie]

Nope, the VAT on a ?20 ticket (which is actually ?17.02 ticket + VAT) is currently ?2.98, it will fall to ?2.55 giving a saving of 43p.

[Charles Bannerman]

You need to check your maths 12th Man.

To three significant figures, 12th man is actually spot on. At 17.5% VAT, the price is 117.5% of the pre tax purchase price. When VAT drops to 15% it becomes 115%.The new price is therefore 115/117.5 of the old one. That equates to 97.87% - a saving therefore of (100 - 97.87) = 2.13% which is exactly as 12th man stated. Caley D has forgotten that the VAT is actually included in the full purchase price.

Go on then D.... apologise to the man!!

Edited December 3, 2008 by Charles Bannerman

[stevico1]

You need to check your maths 12th Man.

To three significant figures, 12th man is actually spot on. At 17.5% VAT, the price is 117.5% of the pre tax purchase price. When VAT drops to 15% it becomes 115%.The new price is therefore 115/117.5 of the old one. That equates to 97.87% - a saving therefore of (100 - 97.87) = 2.13% which is exactly as 12th man stated. Caley D has forgotten that the VAT is actually included in the full purchase price.

Go on then D.... apologise to the man!! :thumb04:

Charles was that a flashback of nearly 30 years or what was nearly going of to do my homework

[Yngwie]

To be fair, I think D was probably working on the assumption that Mike Smith would get confused with the VAT and make a hash of it.....

[CaleyD]

Yes, schoolboy error on my part with the VAT calculation.....but I'll stick to my guns on the fact that it's not a 2.5p VAT cut that the club are passing on....as stated in the opening post

[Charles Bannerman]

Charles was that a flashback of nearly 30 years or what was nearly going of to do my homework

Cairns, boy! If you get that homework wrong I'm going to belt you!

Yes, schoolboy error on my part with the VAT calculation.....but I'll stick to my guns on the fact that it's not a 2.5p VAT cut that the club are passing on....as stated in the opening post :thumb04:

It IS a 2.5p VAT cut, that is 2.5p for every ?1 of purchase price before VAT.... equating to 2.13% of the full pre-cut purchase price. Or are you presenting some semantic argument about what constitutes "passing on" or some such?

[Scotty]

Ahh Charles, I think CaleyD is scrambling to make the point that although the poster was correct in saying it was equivalent to a 2.13% cut over the original price + vat @ 17.5% as you so clearly pointed out, the poster didnt make the distinction that it was 2.5p per pound.

However, having said that and using your formula again (which is correct) surely it should be a 2.13p reduction per pound equivalent rather than 2.5p.

bottom line - its all a bunch of semantics and there is not much to discuss really as the club are passing on the reduction and will probably put the prices up next year anyway so the whole thing will be moot.

[CaleyD]

I think Charles is just looking for an argument by reading something in to my post that clearly isn't there. Journalist types are good at that sort of thing...sometimes

[12th Man]

MY apologies I will start again !

DUE TO THE RECENT VAT CUTS ! ( which to an individual is very small but collectively adds up to a fair bit )

How would you feel about the current savings on VAT going to help fund the youngsters getting a reduced rate at the gate now and again or putting the money towards youth development.

I have mentioned the above, as the club 'could' use this to clear some debt, but it would be deemed more charitable to divert the money in this way and possibly only upset a small minority, (if they are aware of the changes).

If the public are so upset about giving 50p to the club for a good cause, then go and hand in your match ticket and ask for a 50p refund from the club.

I'm all in favour of the savings being used in this way.

Half season tickets could get the discount, and keep the prices exactly as they were at the gate before.

PS passing on the VAT cut to the consumer is NOT compulsory.

maybe the taxman could stand outside with a charity box collectiing for the vat deficit fund

[Naelifts]

This is one of the best threads that I have read in a long time. We have had the accountant speak............where is the maths teacher? Personally I think they should make the pies 2.13 % smaller and still charge the same. In the case of macaroni , taking out one macaron should do it!

[Kingsmills]

Surely that should be 2.3% larger and still charge the same.

[Charles Bannerman]

Surely that should be 2.3% larger and still charge the same.

I actually make that 2.1739% larger. The alternative to cutting the price by to a fraction of 115/117.5 is to make the product larger by a factor of 117.5/115 (which is an increase of 2.1739% to 5 significant figures) and keep the price the same.

[The Mantis]

This is one of the best threads that I have read in a long time. We have had the accountant speak............where is the maths teacher?

Well, working, obviously......