Taxi Driver Online

fellow guest

whats good about giving 5 or 6 grand from your earnings?

got to be done but good?

VAT.
First establish your relationship with your drivers and set it out in writing and both sign the document.

ie. Cash work you act as agent only, no profit no VAT
Account Work you act as principle and charge VAT on the full fare.

or. Cash work you act as agent only, no profit no VAT
Account work you act as agent and VAT is charged on the service element, the difference between what the customer pays you and you pay the driver.
Drivers should invoice you for the work they do for you on the accounts. If they are not VAT reg, they get net amount. If they are VAT they add VAT and you claim it back.
VAT is on your profits if you are an agent acting between the customer and the driver, no profit no vat.

You sleep easy at night. You save more than that on admin.

Its all good.

Being VAT reg gets you into the big boys club. They want to lend you money get you to grow, gets you off the street and into the board room.
You get credability.

ok if you get away with it, how vat is divided isnt up to us, it aint a honesty box, get it wrong and I believe you are and its early retirement.

at six grand sleaping pills are cheaper?

so I am in the big boys club now eh? mind if I tell Mick and Nige I am sure they will show respect?

and so customs and excise will loan me cash, gee wizz that sounds good.
as for getting me off the street you know what that means the envious Sussex will be calling me a leach, besides I know exactly what my drivers are up to when on the streets,

but could wear a pin striped suit couldnt I?

by the way Mick according to my fellow guest I have credibility, take that.

still its a dream wish what guest said was true!

is there any secret handshakes that goes with all this

Sleeping pills may be cheaper, but if you get a full tax investigation £6 grand probably would not cover the cost.
Ducking and diving with the VATman, taxman and the PAYE may seem clever in the short term but when you need a loan, mortgage or want to sell your business it may not be so bright.

of course I aggree with you 100%
a point I make down at the office

If you paid 10% of your turnover you would be worse off then doing it properly!

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There is Significant Unmet Demand for my Opinion.

This is just plain wrong.

Cash betweeen the driver and customer , yes No VAT. But the driver still pays you a percentage of that cash take, and that percentage is taxable at the full rate. No excuses Pal, they just snatch your business.

VAT is NOT calculated on profits in the taxi trade. VAT have no such special schemes for the taxi trade. Doing that is just plain illegal.

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There is Significant Unmet Demand for my Opinion.

Thats more than likeley why they are doing it in the taxi trade.