Taxi Driver Online

it introduces another level of red tape and an extra govermnet body to keep happy

the taxman has a big book, it has all trades in it with a ratio of expenses to income

so.... dont put too much fuel thru your books and try to understate income....

not that you woauld, course not....dear me no....

i am to de-register after 5 years registered, but all my work was on account and i also used vat regd subbies, and paid vat on a 10K van.

Not easy to Understate your Income..all the taxman need do is check you Milage at year start and end...then Reference that with the Amount of Fuel used and he has a Fairly accurate Picture of your dealings..not like a Joiner or Tradesmen that Charges only time, whos to say how long they work or dont work...

they aint stupid, but to be honest, they only spot check 1 in 100 sole traders, so the odds aint bad, having said that if they find a discrepancy they can claim 6 years worth

when i went vat regd i used the FRS, charging 17.5% on invoices, handing over 4% of an invoice vat inc total, and not claiming individual receipt vat amounts, making calculations very easy, sadly HMRC then upped the ante to 9%.......

You are not allowed to add anything to your fares.
The metered fare includes any VAT.

It may be different for unmetered PH,

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plus, if vat regd, you MUST supply a vat receipt if requested, so you need an invoice pad in the car....

It's not proof that you don't use the car a heck of a lot in your spare time. After all, a tax-deductable motor is a perk of the job!

and taxable.....

ooops

There is a Contradiction here....in another post it States

So Im guessing that if your VAT Registered and opt for the Middle route of 8% percent VAT Charged on all your Incomings with no VAT reclaimable on your Outgoings that your Meter would need to be set at 8% VAT as well...It seems Overly Complicated, how would A VAT registered Client claim back VAT at two Different Levels of VAT...or can they Only claim Back VAT on the 17.5% Level. Any VAT men in the FORUM????? , My Heads About to Explode

where do you get this 8% from?

this?




VAT FLAT RATE SCHEME

For small businesses

An optional flat rate scheme was introduced with effect from 24 April 2002 by FA02/S23. At the introduction date the scheme was available to all small businesses:

* with a VAT exclusive annual taxable turnover of up to £100,000, and
* with a VAT exclusive annual turnover, including the value of exempt supplies and other non taxable income, of up to £125,000.

Both the above requirements apply at the point of entry into the scheme. Businesses check turnover each anniversary of joining the scheme, if it is over £150,000 VAT inclusive they must leave the scheme.

A business that joins the scheme avoids having to account internally for VAT on all purchases and supplies, and instead calculates its net liability by applying a flat rate percentage to the tax inclusive turnover. The flat rate percentage depends on the trade sector into which a business falls for the purposes of the scheme. There is a wide spread of applicable percentages ranging (on introduction of the scheme) from 5% to 14.5%.

Under the flat rate scheme businesses:

* continue to charge their customers the normal rate for the supply (i.e. not the flat rate percentage) on all taxable supplies of goods or services.
* issue tax invoices to their VAT registered customers, and also to all other customers if the business chooses to do so (these invoices show the normal rate for the supply and are used for the customers’ VAT reclaim).

They do not have to record all the details of the invoices issued or purchase invoices received to calculate the amount of VAT they must pay to HMRC.

or this

Reduced rate 5 per cent
Children's car seats

More about children's car seats in VAT Notice 701/23
Conversion of a residential building to a different residential use

Find out when converting buildings into a different residential use qualifies for reduced rate VAT in VAT Notice 708
Eco-friendly materials for insulation and saving or making power including wind turbines and solar panels

More about VAT on eco-friendly materials and their installation in VAT Notice 708/6
Electricity, gas and other types of fuel and power for household and non-business use - but power and fuel supplied to a business is standard-rated

More about VAT on fuel and power for household or non-business use in VAT Notice 701/19
Energy saving materials that are installed in residential or charity premises

More about VAT on energy saving materials in VAT Notice 708/6
Heating systems, security items, gas supplies and installations paid for by grants

More about heating and energy in VAT Notice 708/6
Nicotine patches, nicotine gum and other items to help people stop smoking that are bought over the counter

More about VAT and items to help people stop smoking in Budget Note 77/2008 (PDF 42K)
Renovation or alteration of empty residential premises

More about reduced rate VAT when you're renovating or altering a residential building in VAT Notice 708
Sanitary towels, tampons and other products for periods and after having a baby

More about sanitary protection products in VAT Notice 701/18

Im thinking of this Flat rate scheme its around a flat rate of 9% for Taxis here the Link http://customs.hmrc.gov.uk/channelsPort ... e=document

on the FRS you still charge 17.5%, but hand over 9%

i.e.

get £100 plus vat = £117.5


you pay HMRC 9% of £117.5 = £10.58

you dont reclaim individual vat on fuel, goods, etc except "capitol items", i.e.vehicles or computers, and you can do that even after 3 years from purchase if just going regd

im struggling to see the point of vat regd for PH or hackney ops

you would probably only ever charge it properly on account users invoices

i wasnt regd when i was plated before, wouldnt bother anyway for normal cash work.......

as for the mandatory regd level, whose gonna know?......