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Post by ChrisB on Aug 23, 2015 8:53:36 GMT
I have always wondered why receivers were never as popular in the UK as they seem to be elsewhere in the world and this morning I read something that explains it. It was all because of the taxman.
When we had purchase tax between 1940 and 1973, goods were levied according to their perceived luxury status and it led to all sorts of odd situations. Rates changed seemingly at whim and for all sorts of odd reasons. The receiver example is a good one: tuners and receivers were subject to a 50% rate tax but amplifiers at 25% and sometimes zero, so it was more cost effective to buy seperate items.
Equipment cabinets were classed as furniture and, therefore, deemed to be essential items, so tax was at 5% but the equipment that went in them at different rates. A free standing record rack went for 150% of retail price, whereas if you chose to put your discs in a wooden cabinet, the price was 105%.
This is why kits were popular, because parts were subject to low or no tax. Often the kits required only the absolute minimum of non technical work to get them going.
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Post by ChrisB on Aug 23, 2015 8:59:58 GMT
Another interesting point is that the tax arrangements apparently influenced design of hifi to some extent. With tuners at the highest rate, the manufacturers realised that the cost to the customer could be kept down by building them without power supplies and to have power drawn from the amp. This way, the power supply components remained untaxed. Some makers made powered and unpowered versions of the same model and some sold the psu as a standalone (and untaxed) item.
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Post by ChrisB on Aug 23, 2015 9:10:24 GMT
Record buyers had it tough, as they were levied at the highest rate and it changed a lot. Rather amusingly and completely coincidentally, the rate charged for a long time was thirty three and a third percent! This was the rate when purchase tax was introduced in 1940 but it was doubled within two years and even reached 100% between 1943 and 1946, which must have really hurt! In the main though, it stayed between 40 and 60 percent for most of the period that the levy was applied. There were a few dips down to the teens and twenties and it was at 25% the year before it was scrapped in favour of VAT.
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Post by MartinT on Aug 23, 2015 10:09:41 GMT
Interesting, Chris, I didn't known that loophole and it does explain the lack of interest in receivers. There is also the question of lack of flexibility in a receiver, limiting upgrade options.
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Post by ChrisB on Aug 23, 2015 10:18:35 GMT
Yes, that is a factor but despite that there were healthy sales of receivers in the US and Germany, for example
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Post by MikeMusic on Aug 23, 2015 13:25:40 GMT
Tax does change lives and the way of things, in ways legislators cannot work out in advance, even though some children could.
I remember the delayed VAT increase many years ago.
Responsible for a huge increase in white goods being imported as UK industry could not make them in time
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Deleted
Deleted Member
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Post by Deleted on Aug 24, 2015 15:41:17 GMT
You only have to pick up an old H-Fi mag from the early 70's sales pages will most times give a price which will say excluding taxes.
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Post by MartinT on Aug 25, 2015 6:01:01 GMT
I get really annoyed when asking for quotes for equipment at work. EVERYTHING is quoted excluding VAT, as if that is automatically the price we will pay. Being an independent school, we are a registered charity and therefore must pay the VAT with no chance to claim any of it back.
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Post by MikeMusic on Aug 26, 2015 14:28:36 GMT
We have to remember when we quote printing for some semi governmental places and charities it is "plus VAT" as they cannot claim it back
I came up with a legal wheeze for one though.
We print and ship overseas, direct for some work. No VAT !
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Post by MartinT on Aug 26, 2015 16:47:21 GMT
Nice!
Now if only I could get Dell servers and SMARTboards that way...
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Post by MikeMusic on Aug 26, 2015 20:13:22 GMT
They get a great price on courier as we get such a good deal - minus the VAT they don't pay. I was rather proud of that one !  Find something that you buy that is kosher non vatable and have the kit added as part of the service. Legit. Robert on Cix put me onto that. Speak to him first though ! |
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