Discount for cash...
Discussion
(Possibly not the right section for this post so happy for it to be moved somewhere better)
Having a property cleaned professionally and the guy doing it quoted me two prices. One for a bank transfer, and a cheaper one if I paid cash. While there's no guarantee that if I paid by bank transfer that it's a business account and that he would actually declare the earnings, it seems more likely than by cash.
I've already made a choice on how I'll be paying, but my question is which would you do?
Having a property cleaned professionally and the guy doing it quoted me two prices. One for a bank transfer, and a cheaper one if I paid cash. While there's no guarantee that if I paid by bank transfer that it's a business account and that he would actually declare the earnings, it seems more likely than by cash.
I've already made a choice on how I'll be paying, but my question is which would you do?
Im the opposite, i hate cash, as i then have to go to the effort of banking it!
I personally don't care about the slight tax benefit of "cash"
I can''t use it to pay the:
Mortgage/rent
Council tax
Utility bills
Internet/phone
Insurance
Car tax (is DD)
Plus many more!
(Ok a few may be able to pay at a post office etc, but that wastes valuable time)
I hate actual shops so i do everything online, so cant pay cash there.
I have to keep it stashed away somewhere, where there is a chance i may forget, get stolen, catch fire etc.
Constantly worry about what i say, incase HMRC catch wind.
Or i could just pay some tax, keep my money in the bank and spend less time pissing around with cash!
Drives me nuts when people go, "how much for cash?"
I personally don't care about the slight tax benefit of "cash"
I can''t use it to pay the:
Mortgage/rent
Council tax
Utility bills
Internet/phone
Insurance
Car tax (is DD)
Plus many more!
(Ok a few may be able to pay at a post office etc, but that wastes valuable time)
I hate actual shops so i do everything online, so cant pay cash there.
I have to keep it stashed away somewhere, where there is a chance i may forget, get stolen, catch fire etc.
Constantly worry about what i say, incase HMRC catch wind.
Or i could just pay some tax, keep my money in the bank and spend less time pissing around with cash!
Drives me nuts when people go, "how much for cash?"
Edited by Bristol spark on Sunday 4th September 09:44
TooMany2cvs said:
romeogolf said:
but my question is which would you do?
His tax evasion is not your problem.Whichever is cheaper.
If I am dealing with someone who is providing a service, it's not my job to be concerned around their tax affairs, I have to assume all is proper otherwise I'd never buy anything from anyone!
It's quite different - morally - if he's asked for a bank transfer and you've suggested he takes cash so he can avoid paying tax and you can make the associated saving however this isn't the case here.
If I am dealing with someone who is providing a service, it's not my job to be concerned around their tax affairs, I have to assume all is proper otherwise I'd never buy anything from anyone!
It's quite different - morally - if he's asked for a bank transfer and you've suggested he takes cash so he can avoid paying tax and you can make the associated saving however this isn't the case here.
Could be perfectly legitimate mind you.
I do consulting for a firm that has two sub-companies - one VAT registered, one comes under the threshold and isn't. Sales to those who can reclaim the VAT back (probably the majority of sales in this case) go into the 'VAT' company account. VAT then gets reclaimed as usual.
Sales to small companies who cannot reclaim are done without VAT and go into the second company's account. So long as the threshold of 70K or so isn't met by the end of the financial year and so long as the firm doesn't attempt to claim back VAT on sales that go into this non-VAT company account - it's legal and above board.
Allows the firm to offer cheaper prices to those who can't reclaim VAT (such as the OP) and business as usual for the main customers who can. Playing devils advocate here....
I do consulting for a firm that has two sub-companies - one VAT registered, one comes under the threshold and isn't. Sales to those who can reclaim the VAT back (probably the majority of sales in this case) go into the 'VAT' company account. VAT then gets reclaimed as usual.
Sales to small companies who cannot reclaim are done without VAT and go into the second company's account. So long as the threshold of 70K or so isn't met by the end of the financial year and so long as the firm doesn't attempt to claim back VAT on sales that go into this non-VAT company account - it's legal and above board.
Allows the firm to offer cheaper prices to those who can't reclaim VAT (such as the OP) and business as usual for the main customers who can. Playing devils advocate here....
LandRoverManiac said:
Could be perfectly legitimate mind you.
I do consulting for a firm that has two sub-companies - one VAT registered, one comes under the threshold and isn't. Sales to those who can reclaim the VAT back (probably the majority of sales in this case) go into the 'VAT' company account. VAT then gets reclaimed as usual.
Sales to small companies who cannot reclaim are done without VAT and go into the second company's account. So long as the threshold of 70K or so isn't met by the end of the financial year and so long as the firm doesn't attempt to claim back VAT on sales that go into this non-VAT company account - it's legal and above board.
Allows the firm to offer cheaper prices to those who can't reclaim VAT (such as the OP) and business as usual for the main customers who can. Playing devils advocate here....
Is that really allowed? I *thought* the VAT rules were written in such a way as to prevent turnover being carved up across multiple entities to stay below the threshold?I do consulting for a firm that has two sub-companies - one VAT registered, one comes under the threshold and isn't. Sales to those who can reclaim the VAT back (probably the majority of sales in this case) go into the 'VAT' company account. VAT then gets reclaimed as usual.
Sales to small companies who cannot reclaim are done without VAT and go into the second company's account. So long as the threshold of 70K or so isn't met by the end of the financial year and so long as the firm doesn't attempt to claim back VAT on sales that go into this non-VAT company account - it's legal and above board.
Allows the firm to offer cheaper prices to those who can't reclaim VAT (such as the OP) and business as usual for the main customers who can. Playing devils advocate here....
PSRG said:
LandRoverManiac said:
Could be perfectly legitimate mind you.
I do consulting for a firm that has two sub-companies - one VAT registered, one comes under the threshold and isn't. Sales to those who can reclaim the VAT back (probably the majority of sales in this case) go into the 'VAT' company account. VAT then gets reclaimed as usual.
Sales to small companies who cannot reclaim are done without VAT and go into the second company's account. So long as the threshold of 70K or so isn't met by the end of the financial year and so long as the firm doesn't attempt to claim back VAT on sales that go into this non-VAT company account - it's legal and above board.
Allows the firm to offer cheaper prices to those who can't reclaim VAT (such as the OP) and business as usual for the main customers who can. Playing devils advocate here....
Is that really allowed? I *thought* the VAT rules were written in such a way as to prevent turnover being carved up across multiple entities to stay below the threshold?I do consulting for a firm that has two sub-companies - one VAT registered, one comes under the threshold and isn't. Sales to those who can reclaim the VAT back (probably the majority of sales in this case) go into the 'VAT' company account. VAT then gets reclaimed as usual.
Sales to small companies who cannot reclaim are done without VAT and go into the second company's account. So long as the threshold of 70K or so isn't met by the end of the financial year and so long as the firm doesn't attempt to claim back VAT on sales that go into this non-VAT company account - it's legal and above board.
Allows the firm to offer cheaper prices to those who can't reclaim VAT (such as the OP) and business as usual for the main customers who can. Playing devils advocate here....
Bristol spark said:
Im the opposite, i hate cash, as i then have to go to the effort of banking it!
Ditto. I often get asked if we accept cash on the day. I say that we prefer a bank transfer or even a card payment (yes, not only do we have it all formalised but we have to pay 2.5% extra if it's a card payment!).Gassing Station | The Lounge | Top of Page | What's New | My Stuff





