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| With VAT at 20% http://www.taxi-driver.co.uk/phpBB2/viewtopic.php?f=1&t=17780 |
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| Author: | skippy41 [ Wed Nov 02, 2011 11:32 pm ] |
| Post subject: | With VAT at 20% |
Will this have an effect on some of the larger companies, or even those just over the threshold Could some go bust or cut the numbers of vehicles Dont forget if you drive for a VAT reg company you have also taken a 2.5% pay cut |
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| Author: | toots [ Wed Nov 02, 2011 11:37 pm ] |
| Post subject: | Re: With VAT at 20% |
skippy41 wrote: Will this have an effect on some of the larger companies, or even those just over the threshold Could some go bust or cut the numbers of vehicles Dont forget if you drive for a VAT reg company you have also taken a 2.5% pay cut I don't follow your logic 
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| Author: | Sussex [ Wed Nov 02, 2011 11:40 pm ] |
| Post subject: | Re: With VAT at 20% |
toots wrote: I don't follow your logic FFS this is Skippy, no-one follows his logic. 
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| Author: | skippy41 [ Wed Nov 02, 2011 11:50 pm ] |
| Post subject: | Re: With VAT at 20% |
Here we go Once upon a time Right you rent a radio or cab from an office, that company is vat registered, so they give you an invoice showing the vat or should, all fares are subject to vat so you not only loose out by having to pay extra to that office you also loose out on part of the fare as well |
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| Author: | toots [ Wed Nov 02, 2011 11:53 pm ] |
| Post subject: | Re: With VAT at 20% |
skippy41 wrote: Here we go Once upon a time Right you rent a radio or cab from an office, that company is vat registered, so they give you an invoice showing the vat or should, all fares are subject to vat so you not only loose out by having to pay extra to that office you also loose out on part of the fare as well You only pay the VAT element (to the VAT man) on the fare if you, as a self employed driver, are VAT registered. Most ph companies here don't give you a receipt for your rent unless you ask for it and the rental charge is including the VAT element already |
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| Author: | skippy41 [ Thu Nov 03, 2011 12:07 am ] |
| Post subject: | Re: With VAT at 20% |
toots wrote: skippy41 wrote: Here we go Once upon a time Right you rent a radio or cab from an office, that company is vat registered, so they give you an invoice showing the vat or should, all fares are subject to vat so you not only loose out by having to pay extra to that office you also loose out on part of the fare as well You only pay the VAT element (to the VAT man) on the fare if you, as a self employed driver, are VAT registered. Most ph companies here don't give you a receipt for your rent unless you ask for it and the rental charge is including the VAT element already Then they are breaking the law I think there is a high court case going on at the moment or has just ended regarding receipts, how do you claim it back off the tax man without proof?? |
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| Author: | toots [ Thu Nov 03, 2011 12:15 am ] |
| Post subject: | Re: With VAT at 20% |
skippy41 wrote: toots wrote: skippy41 wrote: Here we go Once upon a time Right you rent a radio or cab from an office, that company is vat registered, so they give you an invoice showing the vat or should, all fares are subject to vat so you not only loose out by having to pay extra to that office you also loose out on part of the fare as well You only pay the VAT element (to the VAT man) on the fare if you, as a self employed driver, are VAT registered. Most ph companies here don't give you a receipt for your rent unless you ask for it and the rental charge is including the VAT element already Then they are breaking the law I think there is a high court case going on at the moment or has just ended regarding receipts, how do you claim it back off the tax man without proof?? You ask them for a receipt if needed. You only get a VAT receipt if you ask for it and they only have to be VAT registered if they meet the VAT threshold. You don't need a VAT receipt if you are not VAT registered because you can't claim the VAT back if you aren't. I think you need to read the high court case first before you comment on it 
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| Author: | skippy41 [ Thu Nov 03, 2011 12:19 am ] |
| Post subject: | Re: With VAT at 20% |
I'm on about company's who are over the 73K threshold so a cab or pH company with 5 or 6 vehicles could easily go over it |
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| Author: | toots [ Thu Nov 03, 2011 12:22 am ] |
| Post subject: | Re: With VAT at 20% |
skippy41 wrote: I'm on about company's who are over the 73K threshold so a cab or pH company with 5 or 6 vehicles could easily go over it Our companies have over 300 vehicles and are all VAT registered but what is the point of them issuing a VAT receipt when you can't claim it back as a self employed drive
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| Author: | grandad [ Thu Nov 03, 2011 7:35 am ] |
| Post subject: | Re: With VAT at 20% |
We are a VAT registered company Skippy. All our contract work is subject to VAT. Whilst on contract work, all our drivers are on the books. If the drivers wish to do any other work they are self employed for this purpose and they pay for the use of the vehicle. The amount that they pay the company for the use of the vehicle is subject to VAT. The fares that they take are their own fares and do not come through the company so they are not subject to VAT. As a VAT registered company it is my understanding that any receipt that I issue to the drivers for their use of the vehicle must show the VAT element and the VAT number. They may not be able to reclaim the VAT from the VATMAN but they can claim it as an expense in their tax return to the TAXMAN. So here is an example of how it works in my company. A driver works 15 hours in a week on a school contract at £7.50 per hour and I pay him £112.50. This is below the income tax threshold and the national insurance threshold so there are no deductions. The driver then wants to work on his own account on the Friday night and Saturday night. He drives a total of 200 miles and takes £300. He will have worked around 13 hours on the 2 nights. He would then pay me £0.33 for every mile including VAT so that would be £66.00 Which is £55.00 and £11.00 VAT. So the driver will take home £234 from his £300. He has no other expenses so he would need to pay tax and national insurance, subject to anything remaining out of his income tax allowance, on this sum. The figures used are for illustration only. |
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| Author: | Nidge [ Thu Nov 03, 2011 11:00 am ] |
| Post subject: | Re: With VAT at 20% |
skippy41 wrote: Will this have an effect on some of the larger companies, or even those just over the threshold Could some go bust or cut the numbers of vehicles Dont forget if you drive for a VAT reg company you have also taken a 2.5% pay cut I was talking to a driver the other day who had just become VAT registered, I told him he was a tvvat because he didn't earn over the threshold, he said "I know you don't have to earn over the threshold to claim the VAT back on rental and fuel," I've looked into it and it's worth a whirl. The driver in question was paying VAT on his car rental and fuel which added up to over £70 per week. |
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| Author: | toots [ Thu Nov 03, 2011 11:26 am ] |
| Post subject: | Re: With VAT at 20% |
I hope he keeps good records because the VAT man will want his 20% from all those fares he has to do to buy the fuel and pay the rent so he can claim his VAT back |
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| Author: | Brummie Cabbie [ Thu Nov 03, 2011 12:49 pm ] |
| Post subject: | Re: With VAT at 20% |
toots wrote: I hope he keeps good records because the VAT man will want his 20% from all those fares he has to do to buy the fuel and pay the rent so he can claim his VAT back I think Mr Midlander might well be right. If you register for VAT, even if under the threshold, you pay 16.667% of your takings to the VAT man [£120 of takings includes £20 in VAT (£100 + VAT = £120) - therefore the VAT percentage of your takings is 16.667%, NOT 20%] Being registered for VAT also allows you to reclaim VAT on purchases, so you can reclaim that too. Although you're paying the VAT man, your taxable figure for Schedule D is then income net of VAT less expenses net of VAT. So all in all, your whole tax bill [Schedule D and VAT] could well be lower than if you absorbed the VAT and just paid Schedule D only. In fact I have just worked it out in fugures and what I have written above is TOTAL GARBAGE!! Mr Skippy41!! Why the f*kc did you start this stupid thread? |
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| Author: | skippy41 [ Thu Nov 03, 2011 1:29 pm ] |
| Post subject: | Re: With VAT at 20% |
Brummie Cabbie wrote: toots wrote: I hope he keeps good records because the VAT man will want his 20% from all those fares he has to do to buy the fuel and pay the rent so he can claim his VAT back I think Mr Midlander might well be right. If you register for VAT, even if under the threshold, you pay 16.667% of your takings to the VAT man [£120 of takings includes £20 in VAT (£100 + VAT = £120) - therefore the VAT percentage of your takings is 16.667%, NOT 20%] Being registered for VAT also allows you to reclaim VAT on purchases, so you can reclaim that too. Although you're paying the VAT man, your taxable figure for Schedule D is then income net of VAT less expenses net of VAT. So all in all, your whole tax bill [Schedule D and VAT] could well be lower than if you absorbed the VAT and just paid Schedule D only. In fact I have just worked it out in fugures and what I have written above is TOTAL GARBAGE!! Quote: Mr Skippy41!! Why the f*kc did you start this stupid thread? Just to let you know what could happen if it goes tits up  and its better than one of those nintendo brain trainers
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| Author: | grandad [ Thu Nov 03, 2011 1:31 pm ] |
| Post subject: | Re: With VAT at 20% |
You can use the flat rate scheme if you want. It makes things easier. |
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