VAT - **** 'em
Discussion
Ham_and_Jam said:
Pit Pony said:
Just had some work done on my roof, by a sole trader. Not Vat registered.
Turned up to do the work with another guy in a Van with completely different livery, also a sole trader
Turns out that's his brother in law and he's "having to" use his van this week, because his is being repaired.
In passing over the next day I found out that that pretty much work on each others jobs. So rather than run one VAT registered business with 2 people in partnership, they are clearly running 2 none vat registered businesses, as sole traders. Or that's my assumption.
Maybe, but can’t see anything wrong with that. Turned up to do the work with another guy in a Van with completely different livery, also a sole trader
Turns out that's his brother in law and he's "having to" use his van this week, because his is being repaired.
In passing over the next day I found out that that pretty much work on each others jobs. So rather than run one VAT registered business with 2 people in partnership, they are clearly running 2 none vat registered businesses, as sole traders. Or that's my assumption.
They are both entitled to run and operate their businesses financially separately.
Trades often help each other out
FourGears said:
Ham_and_Jam said:
I sometimes wonder what goes through politicians minds.
Lifting the VAT threshold from £85k to £90k FFS. Might aswell not bothered.
Needs to be reduced and not increased.Lifting the VAT threshold from £85k to £90k FFS. Might aswell not bothered.
Say £10k would be ideal.
Silverage said:
I was reading today that the most they can put it up to is £100,000 otherwise the EU will kick off. Yes, it’s another bonus from Brexit and Northern Ireland, the gift that just keeps on giving.
How much could we put it up to if still in the EU?Brexit happened, get over it.
I remember a client asking me if I was VAT registered so they could claim the VAT back… despite me being cheap as chips on my hourly rate.
I kindly pointed out if it was including VAT I’d have added VAT on the quote.
It’s like people selling majority (if not entirely) into a retail environment quoting excl VAT.
I still largely don’t understand it as everyone just claims it back… except end customers.
The net effect is it’s a consumer tax?
Surely there is a better way to tax consumption?
I kindly pointed out if it was including VAT I’d have added VAT on the quote.
It’s like people selling majority (if not entirely) into a retail environment quoting excl VAT.
I still largely don’t understand it as everyone just claims it back… except end customers.
The net effect is it’s a consumer tax?
Surely there is a better way to tax consumption?
MustangGT said:
Silverage said:
I was reading today that the most they can put it up to is £100,000 otherwise the EU will kick off. Yes, it’s another bonus from Brexit and Northern Ireland, the gift that just keeps on giving.
How much could we put it up to if still in the EU?Brexit happened, get over it.
jonathan_roberts said:
Mr Whippy said:
Surely there is a better way to tax consumption?
It’s one of the best ways and fairest taxes imo. Use more pay more. Use less pay less. How can there be a better way? We should be taxing consumer income, not expenditure.
skwdenyer said:
jonathan_roberts said:
Mr Whippy said:
Surely there is a better way to tax consumption?
It’s one of the best ways and fairest taxes imo. Use more pay more. Use less pay less. How can there be a better way? We should be taxing consumer income, not expenditure.
But the VAT system seems a brutish and inefficient way of doing it as it is.
Mr Whippy said:
skwdenyer said:
jonathan_roberts said:
Mr Whippy said:
Surely there is a better way to tax consumption?
It’s one of the best ways and fairest taxes imo. Use more pay more. Use less pay less. How can there be a better way? We should be taxing consumer income, not expenditure.
But the VAT system seems a brutish and inefficient way of doing it as it is.
FourGears said:
Needs to be reduced and not increased.
Say £10k would be ideal.
I agree. The VAT threshold is very awkward as you set a business up and just as your getting to a point where you know it's working and want to expand you're hit with a 20 % increase in prices. For some industries it's not important but for B2C service it must be a total nightmare and as we have seen simply promotes tax evasion. I've noticed a few "cash only" signs or signs going up promoting cash in shops some of it dressed up as avoiding banking fees but I'm reality who really is going to bank 100% of the cash they take in? It's just tax avoidance pure and simple. The way that government water money I'm not knocking it!Say £10k would be ideal.
Really VAT should just be in so business transactions so there should be a very low threshold that just kicks in once a business is actually functioning. I suppose the balancing act for government is that if you had a very very low threshold it would promote mass scale cash business and you miss out on a lot of tax/NI as people would just not declare anything.
For those in the position though once you do it it doesn't always have the detrimental effect you might think. For smaller business VAT registration can work as a sign of legitimacy and actually generate more trade. Obviously more so for B2B. As you push through and grow you'll eventually get to the point that you don't want cash as it's too much hassle! As a car dealer we don't want cash it's way too much aggravation. The days of carrier bags full of 20s are long gone sadly.
Edited by fridaypassion on Sunday 24th March 08:11
UK VAT is actually quite relaxed then.
I’m VAT (TVA) registered in Luxembourg. If your turnover is more than €33,500 you need to be VAT registered.
“Fortunately” for me, the 1 client I service is based in the U.S., so I don’t have to add VAT to invoices, but I do have to file VAT returns quarterly.
I’m VAT (TVA) registered in Luxembourg. If your turnover is more than €33,500 you need to be VAT registered.
“Fortunately” for me, the 1 client I service is based in the U.S., so I don’t have to add VAT to invoices, but I do have to file VAT returns quarterly.
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