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PostPosted: Thu Jun 05, 2008 6:32 pm 
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Joined: Thu Jun 05, 2008 9:24 am
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I live in Wales and have been doing a survey of the 22 Local Councils responsible for Licensing Taxis and Private hire Vehicles and have had replies from over 90 % on the question :

Does your Taxi meter Tarriff include VAT ?

The answer has been "NO"

So your metered price does not include Vat BUT Customs and excise state in the VAT notice 700/25
Where your charges are VAT inclusive, you can work out the VAT element by multiplying the fare, including any extras, by the VAT fraction.
Ok "Where you charges are vat inclusive " What about where they are not ?
They are not according to the many Councils
I have not had time to Question the Council Licensing Offices of England as there are to many for me to get round but YOU could ask your own and post the response here.
I did start in the South West and some stated Vat inclusive at the bottom of the Tarriff sheet . I wonder if this was in agreement with the trade or just added later.
The Vat registration rules state that when you register for Vat you do not charge it until you recieve your registration details ( presumably it is a criminal offence to charge when not registered )
This obviously causes a contradiction as if your Council say yes to Vat inclusive then the non Vat registered should charge 17.5% less or face prosecution by HMRC.
Back to the Tarriff that does not include VAT , How do you account for Vat when you cannot charge it on the fare as the meter rate is set by the Council and anyone found to be overcharging the metered rate will be prosecuted by the Council and could lose their Taxi License and livelyhood.
As the system is at the moment it does not seem correct I have sent the questions to the HMRC contact center and failed to get a straight answer they just keep sending me the Vat Guide had a vat visit and when I put it to the officer he first got on his high horse but after I kept throwing the different aspects at him he backed down and agreed my points . It made no difference there and then he could not do anything but as a group fighting our corner I is possible to challenge this unfair practise.
YOU ARE PAYING THEM THE MONEY OUT OF YOUR OWN POCKETS
Vat is a Tax on Consumer Spending paid by your customer not by YOU and if you cannot charge Vat then you are giving them your money.
They spout rubbish that you are able to claim back vat on fuel but at the end of the day you are still paying 82.5 % of your money
My new accountant has worked out that over the years I have paid over 1/2 million pounds to HMRC without question as to the validity of the TAX
I have spoken to a corporate solicitor I had in my car for a couple of hours and he came up with quiet a few points of unfair trading ,competition rules and human rights.
I have had a few accountants over 25 years and 2 years ago I had to get in a Vat specialist because my last accountant messed up it cost 7 thousand to pay him and 50 to Hmrc people who do your VAT do not want to talk about it as they will lose business !!!!!!!!!!


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PostPosted: Thu Jun 05, 2008 9:35 pm 
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Joined: Sun Nov 14, 2004 9:17 am
Posts: 598
Location: West Yorkshire
I fully agree why should a car not registerd for vat be better of than someone that is something should be done about it but what eusasmiles.zip


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PostPosted: Fri Jun 06, 2008 1:17 am 
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Joined: Mon Jan 10, 2005 2:31 pm
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Location: Guess?
DUNTAXI wrote:
I did start in the South West and some stated Vat inclusive at the bottom of the Tarriff sheet . I wonder if this was in agreement with the trade or just added later.


The Fife tariff card is the same - it says where VAT registered the fare is deemed to include VAT.

I think that's the point - the fare is the same whether or not VAT registered, and this has nothing to do with the council or the trade - it's the VAT rules.

The councils you spoke to probably know nothing about VAT, and perhaps that's because it has nothing to do with them. They just set the maximum fare chargeable and the tax treatment is between the trade and the VAT man.


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