Forum Topic

VAT rip off

Just bought milk from 'Costcutter' beside TVU, I always pay 99p, today he asked for £1.30. When I enquired why the price difference I was told "VAT increase".  I did the maths for him, but he wouldn't budge - dread to think what he would have charged if I had done my 'weekly shop' there!

Mari Austin ● 5326d30 Comments

Compared the prices this morning in Sainsbury on my way in to work - 2litre milk £1.55 6 large free range eggs (looked like the same box to me)£1.79 - just for those of you interested in saving money

Bernadette Paul ● 5317d

As far  as I can tell Costcutters are franchised therefore I suppose individuals can pretty much charge what they want in their own shops.  My nephews' shops (the closest is Mleczko beside Sth Ealing Station or Boston Road Hanwell) sells 2 litres of milk for 99p and 6 large free range eggs for £1.19.  Obviously neither the milk nor the eggs come from Poland the milk from a dairy in Acton and the eggs from a local supplier.  However as I said in my earlier post most products, particularly dairy are usually cheaper than the big supermarkets.

Bernadette Paul ● 5317d

Reading today's posting from Bryan (back up thread) I thought that dodgy Costcutters were mending their ways...but then seeing Richard's post above....things might be WORSE than we first thought!It seems a scandal..send Vanessa over there!

Jim Lawes ● 5319d

I popped into this Costcutters recently, for some fairy liquid. On the bottle the price was stated as 99p - however, a price advert on the shelf just below stated 85pAt the till it was £1.05.Shocking.I put the fairy back and trundled outI tend to avoid this shop, if I can possibly avoid it.

Richard Smith ● 5320d

I went into the Costcutter by TVU last weekend, and they'd a special offer on 2-litre (3.5-pint) bottles of their own-brand milk, just £1.25 - bargain!

Bryan Betts ● 5320d

Thanks Jim, another savvy shopper.

Mari Austin ● 5321d

Morning Maria!2 pinter from BP / M&S garage on GWR..Heathrow end..cost 86p as usual last night..& the 4 pinter £1.55.Notice that a 4pack of Heinz Baked Beans had gone up 20p to £2.44!Hugh:it's penny saving time these days!

Jim Lawes ● 5321d

It is true, Whitestile and Costcutter are very friendly.  I just choose to buy milk from Costcutters because I saved aprox £93.60 a year.Thanks Kevin for the tip about Martin's in the High Street.

Mari Austin ● 5321d

"I would recommend going to Morrisons or similar and getting organic milk"Yes I read somewhere years ago that if you are going to buy 'anything' organic, start with the milk as its far more important than organic meat or veggies or wheat etc. 

Steve Taylor ● 5322d

Whitestile Road Costcutters is my local shop, and I find them to be very fair and helpful.

Emma Renton ● 5322d

The Newsagents (Martins?) in the High St are advertising four pints for a £1 in their window!

Kevin Farnan ● 5322d

I've always found Whitestile Road Costcurrers to be fair and helpful. I believe their milk is £1.30 for 4 pints at the mo.However, I would recommend going to Morrisons or similar and getting organic milk; it is so much better tasting and much, much better for the body. It is marginally more expensive but well worth the few extra pence.

Ian Silver ● 5322d

Corner shop on Hamilton Road has put their milk up to £1.50 for four pints, from £1.45.I try and buy from tiny parade of shops on Windmill Road opposite Orchard Rad which charge £1.20 for 4 pints. Haven't been in this year but it's always been cheaper than supermarket prices.

Kath Richardson ● 5323d

Great Mari...don't give up with your investigation and reporting skills. We wouldn't know what's happening if you hadn't taken the trouble...and put your head above the Forum parapet. Good on ya!Fancy a shop charging £1.50 for the milk. I suppose if a receipt isn't issued and the purchase is part of a basketful of goods..many folk wouldn't be aware.Ask for a Vat receipt at Costcutters is the recommendation!

Jim Lawes ● 5323d

The shop near the crossing - corner of Windmill Rd/Northfields, sell their milk for 99pence. I was asked for £1.50 at the shop on the corner of Darwin Rd/South Ealing. When I told him that Whitestile was selling it for 1.30 he let me pay that.  However about 8 months ago in the Darwin Rd shop, I had bought goods to the value of £26.84, I decided to pay by credit card and he then added 50 penceon to my bill.  I refused to pay it and he then called me stupid,said that the card company charges him and he had to pass it on to me. I never went back and that is how I found the Costcutter at TVU. Shame they have put up such a large increase - all in the name of VAT!

Mari Austin ● 5323d

Surely where a "registered for VAT" trader (one with a t/o of £65,000 pa approx) incurs a vat charge from his supplier..of goods for resale or trading costs..he is able to claim it back...on his quarterly return to HMRC?Costcutter franchisees are given a schedule of recommended prices....but obviously not heeded by our Paragon "friend". I was surprised to hear of the price charged by the Whilestiles Road Store. But there's trickery at the Paragon Store in my view..shared by the topic poster too.

Jim Lawes ● 5324d

My nephews have a small chain of Polish delis in the area and I bet their prices are far lower than any Costcutters and for certain equivalent items they are far lower than Tescos/Sainsbury etc interestingly particularly dairy goods.  I don't actually know the price of milk (I drink black tea/coffee) as the only milk I ever buy is full fat organic from M&S but having spoken to Michael yesterday and asking about the vat increase he informed me that for the moment they are swallowing the increase in vat and also so far, the additional fuel costs incurred for deliveries (they import their stock directly from Poland so have large transportation costs) however I totally agree that prices will now start to rocket as a result of vat increase and fuel costs.As an aside, my cigarettes in Sainsbury before vat increase cost £6.52 per packet after the vat increase they cost £6.72 - I believe that 2.5% vat increase should have been 16p but the price went up by 20p what does that tell us?

Bernadette Paul ● 5324d

There may not be VAT on food but there is on all transport costs, fuel insuranc and so on. This cannot be passed on as VAT but has to be passed on somewhere.Smaller foodstore groups cannot sustain such huge increases in overheads that the likes of Tesco and Sainsburys can.This ill concieved hike in taxes will damage further smalll and sole traders

Anthony Waller ● 5324d

Good one Jim.Isn't this outfit now within the Nisa Empire.. milking us for all their worth.Good project for someone to compare all the prices locally..

Jim Lawes ● 5324d

Brentford's Costcutter shop has a bad press:http://www.hounslowchronicle.co.uk/west-london-news/local-hounslow-news/2009/04/24/brentford-shop-turns-away-woman-with-guide-dog-109642-23465387/JL

Jim Linwood ● 5325d

Thanks to Mari for raising a topic with many angles..no price labels, no receipts, dodgy practices on our doorsteps. Who has time to investigate?

Jim Lawes ● 5325d

Thanks Jim for being so thorough.  After he had scanned  the milk, he then proceeded to 'punch in' something on the keypad.  He kept 'tutting' to himself and would then recommence the 'punching in'. When he finished  I handed over  £1.98 and that is when he told me  the total would be £2.58, so 30 pence increase on each item! When I enquired as to the increase he clearly told me VAT'  The fact that you were seen taking photos and asking questions may explain why he was 'guarded' in his responses to you.    I go there for milk (and usually end up getting other items as well), because the 'Whitestile Supermarket' charges £1.30 for ANY milk or bread that I buy and they NEVER give a receipt.I don't understand why  there can be such a big discrepancy, in what is a basic food item.  Surely milk and bread are part of the 'stable foods' category and an integral part of most family diets.  Even a 30 pence increase  for my family means an extra £1.80 per week.  This then becomes an extra £93.60 per annum!

Mari Austin ● 5325d

Well,well,I was passing another Costcutter store in Hendon..after midnight and it was still open!So, in I went and asked direction to the milk..and really good range of milks on display..but no prices. Here we go I thought. Checked price with a very charming chap at the till..and he said 80p!Really?Yep?Manager came over..very charming and a sole trader too.He got his Costcutter book out listing all the recommended prices..all the brands I saw showed "recommended 86p" and even that gives a 30%+ profit margin!He said that this TW8 chap must be taking the mickey charging £1.25 /£1.30..edpecially if customers don't look at their receipts.

Jim Lawes ● 5325d

No indication of milk prices.Or of price hikeSaying that their previous 99p was below Costcutters recommended price.Cashier misinforming customer about Vat rise..etc

Jim Lawes ● 5325d

Chap came over to see me..and I told him Milk didn't show any prices....and I asked him whether he was Manager. Very vague in his comments reslly but I got out of him that he was a Sole trader and he could charge what he likes!He said milk price was "99p and it was then far below recommended price" I pay 86p at M&S /BP garage.He said a price rise was justified! Why I asked. "VAT?" I enquired. He was vague-ish and said "No".Why did has your cashier insisted that it was a Vat matter?He was confused possibly.Lots of young people buying there...all being conned by the "Costcutter" logo.Untrained incomers, dodgy practices and Keith Vaz might tell me off!

Jim Lawes ● 5325d

Called in there half hour ago on my way to town.Place looked nice,bright and clean..and I went over to the milk section..as always in far corner!Took some pictures having notice that whilst other products around had price clips on the shelving.. the milk area had none...even though there were different sizes, types of milk and brands..inc a Costcutter type..but no prices!

Jim Lawes ● 5325d

I reckon you should start a thread named COSTCUTTER rip-off to warn people of this 'robbery'

Steve Taylor ● 5326d

I need some dishwasher tablets..would I get change out of 20 quid there?No doubt they've upped the price of Jaffa cakes too...on which there is no vat. And of course if they are charging VAT..then HMRC will be interested too.

Jim Lawes ● 5326d

Perhaps Trading Standards would be interested? What a robbing git.

Vanessa Smith ● 5326d

Milk is zero-rated for VAT purposes and there should have been no increase.JL

Jim Linwood ● 5326d