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VAT rate may be Lowered in budget.
http://www.taxi-driver.co.uk/phpBB2/viewtopic.php?f=2&t=32051		 Page 1 of 2
Author:  jimbo [ Sat Nov 04, 2017 10:32 am ]
Post subject:  VAT rate may be Lowered in budget.
The vat rate, currently £85,000 might be lowered to £20,000 in budget. Daily Telegraph
Author:  edders23 [ Sat Nov 04, 2017 11:42 am ]
Post subject:  Re: VAT rate may be Lowered in budget.
They would have a massive grass roots revolt
Author:  grandad [ Sun Nov 05, 2017 10:19 am ]
Post subject:  Re: VAT rate may be Lowered in budget.
jimbo wrote:
The vat rate, currently £85,000 might be lowered to £20,000 in budget. Daily Telegraph

I take it that you are referring to the registration threshold.
Author:  edders23 [ Sun Nov 05, 2017 12:16 pm ]
Post subject:  Re: VAT rate may be Lowered in budget.
dropping from 85000 to 20000 would reduce it to the level where nearly every market trader, taxi driver,ebay trader,gardner,man with a van,courier, and the majority of small businesses would be clobbered which of course is the MAIN advantage small businesses have over BIG companies

secondly policing it would be a nightmare how many staff would they need to get a million plus businesses registered and just how many would try and get away with not registering or fixing the books to avoid it which would create a very uneven playing field

above all else I could see tens of thousands of of self employed people give up and sign on for jobseekers allowance rather than give 20 percent of their takings away (less a small amount of rebate)

Would it be even possible to put prices up 20 percent to compensate ? I doubt it it would push inflation up and have a damaging effect on GDP and tax revenues rather than increase them. This sounds to me like lobbying from Big Business who want to control markets after all the biggest winners would be the banks,supermarkets and foreign owned multinationals

rant Over
Author:  Sussex [ Mon Nov 06, 2017 12:23 pm ]
Post subject:  Re: VAT rate may be Lowered in budget.
It would become a bureaucratic nightmare.

Many cabbies struggle with the paperwork they deal with now, vat returns would freak them out.

Of course if we are going to get worker status, then maybe others might have that problem.
Author:  MR T [ Mon Nov 06, 2017 2:00 pm ]
Post subject:  Re: VAT rate may be Lowered in budget.
Sussex wrote:
It would become a bureaucratic nightmare.

Many cabbies struggle with the paperwork they deal with now, vat returns would freak them out.

Of course if we are going to get worker status, then maybe others might have that problem.

But you are not claiming vat on your fares ....or will you be..
Author:  grandad [ Mon Nov 06, 2017 3:25 pm ]
Post subject:  Re: VAT rate may be Lowered in budget.
Of course most businesses can add VAT to their prices but a taxi fare is deeme to include VAT where applicable so a part time drive may not need to register and charge VAT, a full time driver probably would. Would all Councils automatically increase fares to take account of the VAT? No I didn't think so.
Author:  roythebus [ Wed Nov 08, 2017 9:20 am ]
Post subject:  Re: VAT rate may be Lowered in budget.
Look on the bright side, you can claim back the vAT on everything you buy in connection with your business, fuel, oil, servicing, phone bills, cab rental, meals whilst working away from your base, uniform clothing...simply put the vat on your fares. You pay HMRC the difference.

Being in the bus business, I get the VATman to pay ME every quarter, bus travel is zero rated. :)

Doing a vat return isn't rocket science, use a proprietary accounting package on your computer, enter all receipts and purchases, and the machine does it for you.
Author:  grandad [ Wed Nov 08, 2017 10:30 am ]
Post subject:  Re: VAT rate may be Lowered in budget.
roythebus wrote:
simply put the vat on your fares.

If you are in a Hackney and within your district you can only charge the metered fare which is deemed to include VAT if you are registered. You can't just add 20%.
Author:  roythebus [ Wed Nov 08, 2017 8:24 pm ]
Post subject:  Re: VAT rate may be Lowered in budget.
Quite, but you're getting your fuel, phone bills, car rental etc 20% cheaper. What's the problem?

You buy something for £1.20p of that is VAT, so you actually pay £1 for it. You sell for £2.40, of which 40p is VAT. So how much do you end up paying in VAT?
Author:  edders23 [ Wed Nov 08, 2017 9:08 pm ]
Post subject:  Re: VAT rate may be Lowered in budget.
roythebus wrote:
Quite, but you're getting your fuel, phone bills, car rental etc 20% cheaper. What's the problem?

You buy something for £1.20p of that is VAT, so you actually pay £1 for it. You sell for £2.40, of which 40p is VAT. So how much do you end up paying in VAT?



I costed this up years ago i would be approximately £6000 a year worse off :sad: the VAT on fuel and garage bills ain't that much compared to the 20 per cent of your fares and insurance has IPT not VAT so cannot be claimed
Author:  MR T [ Wed Nov 08, 2017 11:04 pm ]
Post subject:  Re: VAT rate may be Lowered in budget.
roythebus wrote:
Quite, but you're getting your fuel, phone bills, car rental etc 20% cheaper. What's the problem?

You buy something for £1.20p of that is VAT, so you actually pay £1 for it. You sell for £2.40, of which 40p is VAT. So how much do you end up paying in VAT?




48p
_20
______
28 p
Author:  roythebus [ Thu Nov 09, 2017 12:33 am ]
Post subject:  Re: VAT rate may be Lowered in budget.
MR T wrote:
roythebus wrote:
Quite, but you're getting your fuel, phone bills, car rental etc 20% cheaper. What's the problem?

You buy something for £1.20p of that is VAT, so you actually pay £1 for it. You sell for £2.40, of which 40p is VAT. So how much do you end up paying in VAT?




48p
_20
______
28 p

Typo, should have read Buy for £1.20, 20p of that is VAT. Vat on something you sell for £2 is 40p. 40-20=20p. :)
Author:  MR T [ Thu Nov 09, 2017 3:34 am ]
Post subject:  Re: VAT rate may be Lowered in budget.
roythebus wrote:
MR T wrote:
roythebus wrote:
Quite, but you're getting your fuel, phone bills, car rental etc 20% cheaper. What's the problem?

You buy something for £1.20p of that is VAT, so you actually pay £1 for it. You sell for £2.40, of which 40p is VAT. So how much do you end up paying in VAT?




48p
_20
______
28 p

Typo, should have read Buy for £1.20, 20p of that is VAT. Vat on something you sell for £2 is 40p. 40-20=20p. :)

No it's not .............. £2. 40 is 40 p vat
Author:  bloodnock [ Thu Nov 09, 2017 8:50 am ]
Post subject:  Re: VAT rate may be Lowered in budget.
So we either add 20% on to our fares which would feck us up or we would absorb a loss of 20% to keep our prices the same.

I used to be Vat registered in a previous life and it was a bloody nightmare, fine if you have the clerical staff to take care of it otherwise it eats into your time to the point you lose work to do it.

Not worth it for my Business, I'd probably have to throw in the Towel and go take advantage of the Dole, It would cost them revenue than they would stand to make, that Hammonds a feckin muppet.
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