Cut in VAT - effect on flight training?
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Joined: Dec 2004
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Cut in VAT - effect on flight training?
With the news that Mr Darling has cut VAT by a whopping 2.5% in the UK, what do people think about the effect on flight training?
The upshot is around £1000 off a £40,000 modular course. Or £2,000 off an £80,000 integrated course.
IMHO, I have to say it's little more than loose change and hardly worth ammending the prices. Surely it just means an increase in FTO profits by 2.5%?
What do we think?
EK
The upshot is around £1000 off a £40,000 modular course. Or £2,000 off an £80,000 integrated course.
IMHO, I have to say it's little more than loose change and hardly worth ammending the prices. Surely it just means an increase in FTO profits by 2.5%?
What do we think?
EK
Joined: Mar 2005
Posts: 217
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From: Cranfield UK
VAT Reduction
Unless a school is VAT registered (the big ones will be) it will make no difference and as fuel duty is increased to negate the cut in VAT there is no difference really if you have already paid. Obviously in the words of Tesco "every little helps" but really it is insignificant. Also the 2.5% rise in duty on tobacco was made from 6pm yesterday! How has anyone really got any extra to spend??
Joined: Aug 2006
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From: London
I don't really see the point in it. I don't think it's going to change anyone's buying habits as it's way too subtle so i don't think it will offer a good enough economic stimulus to justify the cost to the gov. However i'm happy to be proven wrong.
The best thing we can hope for out of this is that it does help to recover the economy which will result in jobs coming sooner. Though i must admit it seems optimistic.
The best thing we can hope for out of this is that it does help to recover the economy which will result in jobs coming sooner. Though i must admit it seems optimistic.
Thread Starter
Joined: Dec 2004
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From: A place where something is or could be located; a site.
Pretty much my thoughts too. Even with courses which offer loads of sim hours (so less fuel issues) the saving is minimal.
As a country, I think we'll be a long time paying this one off....
As a country, I think we'll be a long time paying this one off....
Joined: Nov 2005
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From: UK
Conversely you don't really want prices to be "too low" as high prices provide a barrier to entry and might help you get onto the ladder ahead of the competition. See there is always a positive side to things
