Less VAT and lower interest rates.

[Hazell B]

Anybody think the lower VAT rate (a tax here in the UK that is added to all 'luxury' products, previously 17.5% now 15%) is helping out the economy? What about lower interest rates, are they making you spend more or feel more confident?

[Dave B]

Lower VAT rates? Big deal. Most retailers aren't passing it on, and in those that are I can now save about quarter of the percentage that I'm losing on my savings.

Thanks, Gordon, you one-eyed Scottish idiot (http://www.guardian.co.uk/media/2009/feb/06/jeremy-clarkson-gordon-brown-insult) ;)

Although if the government added 2.5% to VAT you can guarantee there'd be outrage.

[Mark]

The prices of luxury items are shooting up because of the crap exchange rate so the vat is irrelevant. My tv was 500 a month ago. When I got it two weeks later it was 555. Now you can't get one for less than 600.

[GridGirl]

My car insurance runs out in two weeks time so I'm busy looking for quotes online. Interest rates might only be 1% but I thinik the minimum I've seen if I pay in installments is about 15% APR. I'm going to pay it all in one go anyway so I dont really care but it's not anywhere near a true reflection of real interest rates.

I got a loan offer from A&L the other week asking me if I wanted a personal loan for 8.9% when interest rates were 1.5%. Not that I'm interested in taking a loan out but I was getting much better offers i.e. less than 6% in the last few years when interest rates were significantly higher. I suppose it goes someway to proving how much of a loss banks were making previously whe competition was so fierce.

As for VAT....I still haven't managed to reprogramm my VAT calculator for the new rate. :p

[jim mcglinchey]

I've noticed that too. A&L always advertise in the bike mags and a couple of years ago a £7.5K loan would've cost an extra grand or so over 5 years. No protection. Now it ll cost you an extra £1750 or thereabouts. How does that work then?!

[Hazell B]

As for VAT....I still haven't managed to reprogramm my VAT calculator for the new rate. :p

Easiest thing in the world to work out now, in your head

To take off (giving you how much something cost before VAT) is divide by 115. To add on (giving you total cost including VAT) simply add a tenth then half the tenth. Try it with £4.00 and £4.60 for the easiest maths. Don't use decimal points if you use a calculator, as it'll put them in the right place with the answer when taking off.

[GridGirl]

Hazell, VAT was easy enough to work out in your head before. Divide by 10, half that then half it again. :) Having VAT programmed into your calculator just makes it easier as you only need to press a button and it works it out for you. Why would I actually want to calculate VAT in my head....I may be an accountant but I'm not that sad! :p