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PostPosted: Thu Jul 10, 2008 1:45 pm 
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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.


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PostPosted: Thu Jul 10, 2008 6:15 pm 
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Thats the problem..if you Register to get the VAT back on a New Van say, youll get it back at the outset...however if you De register you have to pay back the VAT on the Remaining Value of the Van.

Im sure theres A middle VAT band of About 8% if your Over the Threshold..only downside is you cannot reclaim your VAT back on Purchases..however it lets Earn more at the cost of Adding 8% to your Fares rather than 17.5%..Swings and Roundabouts I guess.


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PostPosted: Thu Jul 10, 2008 6:18 pm 
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wannabeeahack wrote:
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... :?


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PostPosted: Thu Jul 10, 2008 6:32 pm 
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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%.......


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PostPosted: Thu Jul 10, 2008 7:56 pm 
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Boggins wrote:
Earn more at the cost of Adding 8% to your Fares


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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PostPosted: Thu Jul 10, 2008 8:01 pm 
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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....


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PostPosted: Thu Jul 10, 2008 8:07 pm 
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Boggins wrote:
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..

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!


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PostPosted: Thu Jul 10, 2008 9:06 pm 
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York Guy wrote:
Boggins wrote:
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..

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


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PostPosted: Fri Jul 11, 2008 1:07 am 
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gusmac wrote:
Boggins wrote:
Earn more at the cost of Adding 8% to your Fares


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

It may be different for unmetered PH,


There is a Contradiction here....in another post it States
Quote:
VAT is included in the metered fare if the operator is registered for VAT, according to our tarrif sheet. That is just to stop anyone adding VAT to the fare. If you register, you have to pay about 15% of your takings in VAT, minus any VAT you had to pay yourself. Unless you run at a loss, you will always lose out on VAT. So why do it unless you have to


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 :doubt:


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 Post subject:
PostPosted: Fri Jul 11, 2008 9:02 am 
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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.


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 Post subject:
PostPosted: Fri Jul 11, 2008 9:06 am 
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Location: A City near Birmingham
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


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 Post subject:
PostPosted: Fri Jul 11, 2008 11:36 am 
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Posts: 141
wannabeeahack wrote:
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.


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


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 Post subject:
PostPosted: Fri Jul 11, 2008 12:37 pm 
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Posts: 22097
Location: A City near Birmingham
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


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 Post subject:
PostPosted: Fri Jul 11, 2008 1:57 pm 
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Posts: 141
IT Dont affect me mate...if I get near the VAT threshold i slacken off or take a Holiday...no point in Being Marginally over, been there, done that, hated the T shirt.


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 Post subject:
PostPosted: Fri Jul 11, 2008 2:00 pm 
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Location: A City near Birmingham
i wasnt regd when i was plated before, wouldnt bother anyway for normal cash work.......

as for the mandatory regd level, whose gonna know?...... 8) 8)


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