Government tax grab has gone to far!
Discussion
I’m not sure if its just the motor trade? Perhaps some other businesses could comment, for some clarity I will list the excess taxation we have had to endure some motor specific some not it is no wonder we have had such a bad start to the year and are showing no sign of coming out of recession.
1 (only speaking locally) Business rates up for us from £8400 pa in 09 to £17500 this year we haven’t even had our 09 appeals heard let alone 2010.
2 "Motor dealers" are no longer able to obtain refunds of tax discs because they say so it is just theft our money.(this alone costs some main agents tens of thousands a year)
3 Consumer credit licence renewal up from £400 to £1255.
4 VAT (on our margin) up to 20% no prep costs are allowed off this amount the vehicle stands in our stock book at its purchase price so in effect we pay tax on tax.
5 The good old corporation tax.
Couple this to the fact that the average persons spend on domestic fuel, petrol and most other bills has at least doubled recently thus killing peoples spending power, Oh and for the few customers left with some money to spend you will need it as most now fail basic credit checks and are at best "sub prime" and unable to get good finance rates, having perhaps missed one or two repayment due dates over the last six months.
It really is no wonder that so many businesses are failing, things are getting harder for all not easier. If we compare the public spend now with 3 or 4 years ago at the start of the recession there is hardly a recipe in place for growth to pull us out of recession quite the contrary.
Oh and on a different peronal note our local council has put up launch fees for our boats from £5.00 to £27.00 and you have to have a different licence for your boat, jet ski,ect you even have to tell them if you change your engine lol that costs an extra fiver! The world has gone mad!
Sorry for moaning but its Monday!
1 (only speaking locally) Business rates up for us from £8400 pa in 09 to £17500 this year we haven’t even had our 09 appeals heard let alone 2010.
2 "Motor dealers" are no longer able to obtain refunds of tax discs because they say so it is just theft our money.(this alone costs some main agents tens of thousands a year)
3 Consumer credit licence renewal up from £400 to £1255.
4 VAT (on our margin) up to 20% no prep costs are allowed off this amount the vehicle stands in our stock book at its purchase price so in effect we pay tax on tax.
5 The good old corporation tax.
Couple this to the fact that the average persons spend on domestic fuel, petrol and most other bills has at least doubled recently thus killing peoples spending power, Oh and for the few customers left with some money to spend you will need it as most now fail basic credit checks and are at best "sub prime" and unable to get good finance rates, having perhaps missed one or two repayment due dates over the last six months.
It really is no wonder that so many businesses are failing, things are getting harder for all not easier. If we compare the public spend now with 3 or 4 years ago at the start of the recession there is hardly a recipe in place for growth to pull us out of recession quite the contrary.
Oh and on a different peronal note our local council has put up launch fees for our boats from £5.00 to £27.00 and you have to have a different licence for your boat, jet ski,ect you even have to tell them if you change your engine lol that costs an extra fiver! The world has gone mad!
Sorry for moaning but its Monday!
EDLT said:
Dealers haven't been able to cash in tax discs for ages, and if that is the only thing keeping you in business you've got bigger problems. The VAT situation hasn't changed either as far as I know, before it was 17.5% now its 20%. Everyone just put their prices up. 
So that makes it OK then?The Vat was 15% for a short time,many other companys would not be able to stand 20% vat plus corp tax,perhaps then all buisness should pay vat as well as corporation tax on ALL their margins remember the 20% vat is on margin not end of year profit!
The people who caused the deficit should perhaps be the ones who have to pay the higher taxes?
Not perhaps small long established companys but hey ho if you think its right and proper good luck,most dealers agree the margin scheme is unfair and outdated obviously the tax discs dont keep us in buisness but arent government funds,using profit formula for a loss of £400 on refunds you have to gross perhaps double that to cover it,this is a sizeable lump for most dealers at year end.
Pwig said:
Why shouldn't the customer be able to refund their own tax disc?
It was always a 'bit on the side' for the motor trade and i'm glad it has stopped.
The customer can,but if we deal with the tax the tax is ours and gets sent off then paid into the company and tax is paid on it, whether you view it as "a bit on the side" is a matter for you.It was always a 'bit on the side' for the motor trade and i'm glad it has stopped.
Quite often the tax (was) the deal clincher for us being the only bit of "profit" out of an overvalued p/x.
singlecoil said:
As a matter of interest, why would dealers want to be able to cash in road tax discs? I can understand it if the car is being scrapped, but if it is being resold, wouldn't they just add the cost of the disc to the purchase price?
Yes but the majority of trade ins end up at auction or traded this is the point we used to send them back,quite often £100-£150 would be your "trade profit".Despite Gary not putting his arguments across in the most convincing way, the point still stands.
The taxation burden on businesses in the UK is enormous. I don't think it is beyond the realms of imagination to suggest that if this were lower, there would be more businesses and therefore more tax.
The money's got to come from somewhere though so it's as difficult a situation as ever, I guess.
The taxation burden on businesses in the UK is enormous. I don't think it is beyond the realms of imagination to suggest that if this were lower, there would be more businesses and therefore more tax.
The money's got to come from somewhere though so it's as difficult a situation as ever, I guess.
Gary11 said:
singlecoil said:
As a matter of interest, why would dealers want to be able to cash in road tax discs? I can understand it if the car is being scrapped, but if it is being resold, wouldn't they just add the cost of the disc to the purchase price?
Yes but the majority of trade ins end up at auction or traded this is the point we used to send them back,quite often £100-£150 would be your "trade profit".JamieBeeston said:
How else should they raise the required revenue to turn our deficit in to a surplus?
Buy reducing the amount they piss up the wall.My local area is whingeing about having to cut BiB numbers by 10% but they amount the local government/council just throw away for no reason other than they are useless socialist b
ds is like piss on gas mk.6.Bluequay said:
Where does 46% tax figure come from?
For those on the "margin scheme" 20% VAT plus 26% corporation tax= 46%,this is before the buisness rates, obviously a further tax on buisness as my local council informed me when I questioned the cessation of many utilitarian functions yet doubling of rates over the last 2yrs.(I would add this margin scheme does not apply to many other buisnesses)
In effect you pay 20% VAT on the difference beetween the purchase and the sale price with no allowance for preparation cost.Most other buissness pay corporation tax this is only on bottom line profit,the VAT on margin is due whether the company makes money at year end or not you literally pay 20% as you go.
Edited by Gary11 on Monday 25th July 18:52
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