wannabeeahack wrote:
its interesting....
a circuit renting out 100 radios at £80/week (£8000/wk or £416,000 PA) needs to register for vat, why so many dont give a vat receipt for the "settle" is beyond me, it confirms where the money came from plus the car owner/renter needs it for his/her books even if they arent vat registered, its £20 tax a week extra tax if they dont get one.
the base may have (say) 100 school runs at (say) £50 a day, which equals £25,000 per school week, 20% vat incoming is £5000 per week which given most of the owners wont be vat regd can sit in the bank earning (derisory but free) interest, the payout to drivers seems to be about 80% of what comes in, drivers getting paid a lot slower than most bases get paid by the county councils.
That's because the base isn't declaring 100 radios at £80 a week. They are declaring 30 radios at £80 (full-time) and a few more at £45 (part-time).
Some of the staff are paid cash in hand from the missing money, the rest disappears into the owners' pockets.
Result is a far less profitable business on paper and very little tax paid.
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