Amazon VAT rate..!!!!!

[Dave3166]

Good morning all.
Not sure if anyone can help, as Amazon will not speak to me & my son will not ring them..?
I need to know what the VAT rate is if you are just a driver for Amazon, as in driving their Prime vans doing deliveries.
He registered for VAT when he started, only worked for a short time, taking home about £3000 or so as a delivery driver.
He know has to fill in a VAT return so many months later.
I have to put what he earns & the VAT paid.
Just need to know the VAT rate, I can then work out the VAT paid.
I still don’t understand why he has to do this, but just want it done and finished.
He had no expenses etc, as just drove to work, used their van, then drove home again when shift finished.
He has now been removed from the VAT register as now works elsewhere, but still needs to send in the return so has no more penalties.
Hope some one can help, as getting a bit stressed about this to be honest, just want it done once and for all.
Thankyou🙏🙏

[Mandat]

Dave3166 said:

Good morning all.
Not sure if anyone can help, as Amazon will not speak to me & my son will not ring them..?
I need to know what the VAT rate is if you are just a driver for Amazon, as in driving their Prime vans doing deliveries.
He registered for VAT when he started, only worked for a short time, taking home about £3000 or so as a delivery driver.
He know has to fill in a VAT return so many months later.
I have to put what he earns & the VAT paid.
Just need to know the VAT rate, I can then work out the VAT paid.
I still don’t understand why he has to do this, but just want it done and finished.
He had no expenses etc, as just drove to work, used their van, then drove home again when shift finished.
He has now been removed from the VAT register as now works elsewhere, but still needs to send in the return so has no more penalties.
Hope some one can help, as getting a bit stressed about this to be honest, just want it done once and for all.
Thankyou????

I don't fully understand what your question is.

The standard VAT rate, as set by HMRC, is 20%.

It sounds like your son worked as an Amazon driver on a contractor basis, and presumably charged VAT to Amazon as part of this monthly / periodic invoicing. If that is the case, then what rate of VAT did your son put on the invoice?

[Dave3166]

Thanks for the reply.
This is the thing, he has never raised invoices.
I think Amazon raise their own invoices and send them to theirselves.
My son has never sent any invoices, let alone raised them.
It’s a weird way Amazon do things to me.
Thanks anyway.

[Jordie Barretts sock]

So what did your son receive from Amazon when he was paid?

Either way it'll be 20% VAT. I'm surprised he registered for VAT because he'd have to have been turning over £80k+ a year. Difficult for a delivery driver I would think.

[Mandat]

Dave3166 said:

Thanks for the reply.
This is the thing, he has never raised invoices.
I think Amazon raise their own invoices and send them to theirselves.
My son has never sent any invoices, let alone raised them.
It’s a weird way Amazon do things to me.
Thanks anyway.

Looks like Amazon are using a self billing system, which is non uncommon, as I've seen this used by other firms.

The point is that your son would have received copies of all such invoices, as he needs them to complete his own accounts, such as in the current situation.

[Dave3166]

Jordie Barretts sock said:

So what did your son receive from Amazon when he was paid?

Either way it'll be 20% VAT. I'm surprised he registered for VAT because he'd have to have been turning over £80k+ a year. Difficult for a delivery driver I would think.

Thanks for reply.

[Dave3166]

Mandat said:

Looks like Amazon are using a self billing system, which is non uncommon, as I've seen this used by other firms.

The point is that your son would have received copies of all such invoices, as he needs them to complete his own accounts, such as in the current situation.

This is probably what they have done.

I will ask him if he has any.

But I don’t think so, as he’s never mentioned any invoices.

[President Merkin]

If that's what they've done, they'll be able to give him copy invoices. All you need is those to work out any liability but the 80k threshold is probably key.

[Mandat]

Dave3166 said:

This is probably what they have done.

I will ask him if he has any.

But I don’t think so, as he’s never mentioned any invoices.

Unfortunately, it sounds like your son has gone into this endeavour with his eyes closed as to what his responsibilities and obligations will be.

On the face of it, it sounds like he has set himself up as a contractor to Amazon, and even gone to the effort of registering for VAT, without understanding what all this entails.

Without understanding of what he is doing, and by not keeping all paperwork, I think that he & you are going to have a hard time unpicking this mess, all the while HMRC will be issuing automated fines & penalties for non-submission of returns, making payments, etc.

I would suggest trying to speak with a live person at HMRC to explain the situation, and hopefully they can put the automatic penalties on hold, and also help out with resolving the situation.

[h0b0]

This is from Reddit user Callumcromar_10

[Simpo Two]

Dave3166 said:

He registered for VAT when he started, only worked for a short time, taking home about £3000 or so as a delivery driver.
He know has to fill in a VAT return so many months later.
I have to put what he earns & the VAT paid.
Just need to know the VAT rate, I can then work out the VAT paid.
I still don’t understand why he has to do this, but just want it done and finished.
He had no expenses etc, as just drove to work, used their van, then drove home again when shift finished.
He has now been removed from the VAT register as now works elsewhere, but still needs to send in the return so has no more penalties.

If he's VAT registered then he should have been adding 20% VAT to all his invoices. For example:

Driving: £100
VAT @20%: £20
Total: £120

Then he sends the £20 to HMRC when due. Effectively he's just collecting tax for the Government.

If he had no expenses - ie the van belonged to Amazon - I can see no reason for him to have registered..

You say he has been 'removed from the VAT register' - does that mean he actively de-registered for VAT?

It's unfortunate that there's a whole generation growing up who can't or won't use a telephone to talk to people.

[Dave3166]

President Merkin said:

If that's what they've done, they'll be able to give him copy invoices. All you need is those to work out any liability but the 80k threshold is probably key.

Thanks for reply.

He only earns about £3000 while there, so not really worth the paper.
But I need to do the form for him and send it on line so he gets no more fines.

[Dave3166]

Jordie Barretts sock said:

So what did your son receive from Amazon when he was paid?

Either way it'll be 20% VAT. I'm surprised he registered for VAT because he'd have to have been turning over £80k+ a year. Difficult for a delivery driver I would think.

They registered him I beleive, it was in the form he signed.
But this is all new to him so a bit daunting to be fair.

[Jordie Barretts sock]

Very strange that Amazon would take it upon themselves to register a sub contractor for VAT.

Is there anything here we're not being told? Because if all he earned was £3000, then I doubt there's even a tax liability (depending on his other income for the year).

[Dave3166]

Simpo Two said:

If he's VAT registered then he should have been adding 20% VAT to all his invoices. For example:

Driving: £100
VAT @20%: £20
Total: £120

Then he sends the £20 to HMRC when due. Effectively he's just collecting tax for the Government.

If he had no expenses - ie the van belonged to Amazon - I can see no reason for him to have registered..

You say he has been 'removed from the VAT register' - does that mean he actively de-registered for VAT?

It's unfortunate that there's a whole generation growing up who can't or won't use a telephone to talk to people.

Thanks for reply.

Yes, it Amazons van, he had no expenses.

Recently de-registered from VAT successfully.

Also, sent in a Self Assessment Tax return also, which he no longer needs to do one.

But, still has an out standing VAT return to do from the time he was working there until he registered, so apart from one return, they will all be nil entries.

[Dave3166]

Mandat said:

Unfortunately, it sounds like your son has gone into this endeavour with his eyes closed as to what his responsibilities and obligations will be.

On the face of it, it sounds like he has set himself up as a contractor to Amazon, and even gone to the effort of registering for VAT, without understanding what all this entails.

Without understanding of what he is doing, and by not keeping all paperwork, I think that he & you are going to have a hard time unpicking this mess, all the while HMRC will be issuing automated fines & penalties for non-submission of returns, making payments, etc.

I would suggest trying to speak with a live person at HMRC to explain the situation, and hopefully they can put the automatic penalties on hold, and also help out with resolving the situation.

Thanks for reply.

Yeah, he had no idea about the VAT part of the job.

But, it’s only £3000 or so, so no big deal.

I’ve sent them letters to register which has happened.

Also, no more SA returns to be filled in.

It’s just the period when he was working there we have to do still.

So it’s what he earnt plus how much vat he paid to go on form.

The other forms for the other months up until he registered will be nil.

I can ring them to put the fines on hold, hopefully sort this week.

[Dave3166]

Jordie Barretts sock said:

Very strange that Amazon would take it upon themselves to register a sub contractor for VAT.

Is there anything here we're not being told? Because if all he earned was £3000, then I doubt there's even a tax liability (depending on his other income for the year).

That’s all he was paid with Amazon.

Probably no TAX liability, but still needs to do a VAT return for it.

He had nothing to pay once the Self Assessment form was done.

Then he went to work in a hospital on PAYE.

I’ve told them all this in a letter, so that’s all ok.

[Dave3166]

He did not do invoices.

He just turned up, drove the van to deliver parcels, then drove home.

[Seventy-Eight]

How did he de-register for VAT if there are VAT returns outstanding?

[Simpo Two]

Dave3166 said:

But, still has an out standing VAT return to do from the time he was working there until he registered

I think you mean until he DE-registered...

If there are no invoices and so no VAT amounts, my thought is to do the following:

Add up everything he earned after the last VAT return (if there was one). Divide the total by 120, multiply by 20 and that's the VAT he owes.

Edited by Simpo Two on Wednesday 25th September 19:57