RE: Disabled Drivers Do The Dirty
Monday 30th July 2007
Even Aston made disabled car listluxury cars at a huge profit.
Ranger Rovers proved most popular choice
Disabled Drivers Do The Dirty
Disabled driver gang profit from VAT-free privileges
Sixty disabled drivers are being investigated for buying and selling both high-performance and
Even Aston made disabled car list
Disabled drivers are exempt from paying VAT on their personal vehicles, so the suspects involved in this scam have been taking advantage by allegedly buying discounted Aston Martins, Range Rovers and Lamborghinis, only to sell them on immediately for slightly below list.
The cars would be bought as standard, but ordered with minor modifications such as steering wheel knobs, to pass disability scrutinizing. Afterwards, the devices would be removed and the car sold for a knock down rate.
Ranger Rovers proved most popular choice
A Range Rover (the most commonly bought car in this scam) would have been bought for just £53,000 then modified and sold back to the dealer for £57,000.
The scam is said to have cost the tax payer over £225million. One suspect is thought to have purchased 37 'personal' cars in one month.
A source close to the enquiry said: “In some cases, it’s been carried out by paralympians funded by the taxpayers in the first place.”
This has been billed as ‘one of the biggest and simplest frauds to hit Britain in recent years’.
Source: The Sun
Discussion
the article said:
The scam is said to have cost the tax payer over £225million
Surely this should be costing the government, and not the tax payer... and thus this is suddenly a crime and not a clever rouse. If this had been a discount by a company who messed up and this was found out it wouldn't be classed as fraud (i.e. hovers free flight promotion that nearly made them bust)Edited by RacingPete on Monday 30th July 17:02
It's a bit of a murky area. If you're VAT-registered and you reclaim the VAT when buying something, you must then charge VAT on it when you sell.
But this is a scam by non VAT-registered individuals who are exempt from paying VAT by their disability. So they're not actually reclaiming the VAT, but I guess they must be registered with HMRC somehow so that the dealer can sell the stuff to them VAT free?
But this is a scam by non VAT-registered individuals who are exempt from paying VAT by their disability. So they're not actually reclaiming the VAT, but I guess they must be registered with HMRC somehow so that the dealer can sell the stuff to them VAT free?
IIRC anybody sellign more than 5/6 cars a year is technically deamed to be a trader. In which case they have to be running a legitimate business with all the red tape which goes with it. Part of that red tape is that if your turnover is over a particular threshold (which I think is around £60k currently) then you have to register for VAT, meaning you have to charge it when you sell a product and thus pay that amount to the HMRC.
If the above is acurate, then they can only legitamately sell one Range Rover a year and remain under the threshold.
If the above is acurate, then they can only legitamately sell one Range Rover a year and remain under the threshold.
RacingPete said:
the article said:
The scam is said to have cost the tax payer over £225million
Surely this should be costing the government, and not the tax payer... and thus this is suddenly a crime and not a clever rouse. If this had been a discount by a company who messed up and this was found out it wouldn't be classed as fraud (i.e. hovers free flight promotion that nearly made them bust)Edited by RacingPete on Monday 30th July 17:02
hairy said:
we have sold loads of range rovers to disabled people recentley, and to be fair they generally keep them for about three months and sell them on for only a few thousand more then they bought them for. personally dont blame them!!!
well it makes sense to do it this way whats the point in suffering from depreciation if you dont have too.Polarbert said:
How come disabled folk don't have to pay VAT on vehicles?
They just don't, that's all. It's like special discounts for pensioners, despite them being amongst the wealthiest members of society. Income, affluence, means etc has nothing to do with it. It's just the way it is.groomi said:
IIRC anybody sellign more than 5/6 cars a year is technically deamed to be a trader. In which case they have to be running a legitimate business with all the red tape which goes with it. Part of that red tape is that if your turnover is over a particular threshold (which I think is around £60k currently) then you have to register for VAT, meaning you have to charge it when you sell a product and thus pay that amount to the HMRC.
If the above is acurate, then they can only legitamately sell one Range Rover a year and remain under the threshold.
I'm not sure where you got the 5/6 cars a year figure from. Ultimately its down to whether someone can be proved to be running a business or not, as opposed to changing their personal vehicle frequently ;-) Indicators will include stuff like 'owning' several cars at a time, as well as selling at a profit. If the above is acurate, then they can only legitamately sell one Range Rover a year and remain under the threshold.
As for the VAT-free bit, adapted motor cars can be purchased VAT free (the term is 'zero-rated') by wheelchair users for their personal use (note, they don't have to be the driver). Otherwise, it should only be the value of any disabled modifications, and not the car itself, which qualifies for relief. The onus for zero-rating is actually on the supplying dealer, which makes a decision whether or not to charge VAT on receipt of a signed declaration from the recipient. Therefore, if HMRC think that VAT has been underpaid, they'll be banging on the dealer's door for it... Thing is, this seems to be a loophole that can be open to abuse. There is no question of fraud if the recipient uses the vehicle between the time of purchase and the time of sale - thing is, short of covert surveillance, who is going to prove they weren't? If the car doesn't turn a wheel from delivery to sale then that might look suspect, but by then several months have passed and HMRC don't have teams out checking disabled adapted cars, lol
Oh, and the threshold is currently £64,000.
JJ
Balmoral Green said:
Polarbert said:
How come disabled folk don't have to pay VAT on vehicles?
They just don't, that's all. It's like special discounts for pensioners, despite them being amongst the wealthiest members of society. Income, affluence, means etc has nothing to do with it. It's just the way it is.JJ
Sorry but why the fCk shouldn't someone legitimately use their disabled status to make an income? Loads of holier than thou self employed peeps use every trick in the book to avoid income tax. corporation tax. inheritance tax etc and no-one complains. The disabled find it hard enough as it is to get employment, access to premises, etc. Let em be.
Quinny said:
Balmoral Green said:
Polarbert said:
How come disabled folk don't have to pay VAT on vehicles?
They just don't, that's all. It's like special discounts for pensioners, despite them being amongst the wealthiest members of society. Income, affluence, means etc has nothing to do with it. It's just the way it is.
ocks as usual
If you're going to start spreading rumours at least get them right.
As a disabled person who drives a non moddified car I would have to pay the same as you.
If the car is modified, ie hand controls, tail lifts etc, then it is vat excempt.
Quinny said:
One of the reasons for the concession is that the saving in VAT goes towards the cost of proper mods.
And also offsets some of the residual value when, that car is harder to sell later on. As it cost money to remove proper mods as well as install them.
Thanks for answering the question.And also offsets some of the residual value when, that car is harder to sell later on. As it cost money to remove proper mods as well as install them.
Edited by Balmoral Green on Monday 30th July 20:58
This isn't about 'knocking' the disabled anyway, and it's not about your regular disabled car buyer saving the VAT on a bread & butter car. It's about folks who buy several top end cars a month and exploit a tax loophole which is costing the taxpayer, and the disabled, a lot of money. No doubt the loophole will be plugged, and safegaurds will be bought in, and I bet it will be the needy who will suffer as a result.
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