VAT discount.

[whole diary]

[billyo]

I think I'm right in saying that VAT^▸ (Value Added Tax) is chargable on train tickets.  If so, what chance the TOCs^▸ (Train Operating Company) 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

[Ollie]

Sorry but VAT^▸ (Value Added Tax) is NOT charged on tickets.

[Electric train]

Sorry but VAT^▸ (Value Added Tax) is NOT charged on tickets.

But your coffee at the station should be cheaper

[Super Guard]

Sorry but VAT^▸ (Value Added Tax) is NOT charged on tickets.

See, things could be 15% worse 

[grahame]

Sorry but VAT^▸ (Value Added Tax) is NOT charged on tickets.

See, things could be 15% worse 

If you pay 120 pounds for a ticket for a journey in the FGW^▸ (First Great Western) franchise, 20 pounds (my estimate) goes to the DfT^» (Department for Transport - about) as part of the franchise payment ... so although there's no VAT, there's this alternative 20% tax.

[devon_metro]

Wouldn't a 20% tax be ^24 

[grahame]

Wouldn't a 20% tax be ^24 

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

Try it with the (new) VAT^▸ (Value Added Tax).  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!)

[Btline]

Adding 20% on:

^100 x 1.02¹ = ^120

Taking 20% off:

^120 x 0.80¹ = ^96

PS: Bad news about the VAT^▸ (Value Added Tax)!

[John R]

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

[6 OF 2 redundant adjunct of unimatrix 01]

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

haha :0)

[Worcester_Passenger]

In the year to 2006 March 31, the payback from FGW^▸ (First Great Western) 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.

[grahame]

In the year to 2006 March 31, the payback from FGW^▸ (First Great Western) 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!

[Zoe]

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