Great Western Coffee Shop

I think I'm right in saying that VAT is chargable on train tickets.  If so, what chance the TOCs will pass the chancellors VAT reduction on to us come Dec 1st?  Taking the new December prices into account for January's fair increases should lessen the impact a bit.

Not much impact to the average return, but for those of us with monthly/annual seasons it should make a bit of difference.

Billyo

Sorry but VAT is NOT charged on tickets.

But your coffee at the station should be cheaper

See, things could be 15% worse  ;D

If you pay 120 pounds for a ticket for a journey in the FGW franchise, 20 pounds (my estimate) goes to the DfT as part of the franchise payment ... so although there's no VAT, there's this alternative 20% tax.

Wouldn't a 20% tax be ^24  :D

No ... 100 pounds + 20 (%) tax = 120 pounds.

Try it with the (new) VAT.  Shopkeeper wants to get 100 pounds, so has to add 15 pounds VAT - 15% tax. BUT if you take 15% off 115, you get 97.75 ... (we've VAT registered at work and you wouldn't believe how careful you have to be with the maths!)

Adding 20% on:

^100 x 1.02¹ = ^120

Taking 20% off:

^120 x 0.80¹ = ^96

PS: Bad news about the VAT!

An even better one is to add 100% and then deduct 100%, getting to zero.

haha :0)

In the year to 2006 March 31, the payback from FGW to the Government was such that 8% of the fare that you paid to FGW was passed over to the Government. For some reason, I haven't got any more recent figures but will see if I can find them.

Indeed - and that was under the previous franchises (FGW, Wessex, Thames Trains) where the Wessex service was actually subsidised.  As I recall, the new franchise started with a small subsidy for the first year or so, but then payments to the government ramp up - my 20% figure is an estimated average for the 10 year life of the franchise, with the current tax (for that's what it is) being considerably lower that the 20%, but with it rising on a year by year basis.  I've seen a table of franchise payment somewhere - perhaps those are the things you're looking for, Worcseter_Passenger?   I would be grateful if you can find and post them!

http://www.dft.gov.uk/pgr/rail/passenger/franchises/franchisepaymentprofilesa