Taxi Driver Online

UK cab trade debate and advice
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 Post subject:
PostPosted: Mon Feb 23, 2004 3:37 am 
Anonymous wrote:
There are now simplified rules for VAT.
A flat rate has been set for the taxi trade you pay a percentage of your gross turnover around 10%. No input tax, output tax calculations, just one annual calculation.
Charge VAT where appropriate, commercial customers and charge inclusive ie, meter rate on cash work and personal accounts. The is a limit on the turnover, about £500k, this scheme is designed to help small businesses expand. Ask a decent accountant or go to Customs And Excise web site. My local VAT office was very helpful.
Being VAT reg opens the door to a lot of corporate customers.

It's all good.



fellow guest

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

got to be done but good?


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 Post subject:
PostPosted: Mon Feb 23, 2004 3:48 am 
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.


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 Post subject:
PostPosted: Mon Feb 23, 2004 3:49 am 
Anonymous wrote:
Anonymous wrote:
There are now simplified rules for VAT.
A flat rate has been set for the taxi trade you pay a percentage of your gross turnover around 10%. No input tax, output tax calculations, just one annual calculation.
Charge VAT where appropriate, commercial customers and charge inclusive ie, meter rate on cash work and personal accounts. The is a limit on the turnover, about £500k, this scheme is designed to help small businesses expand. Ask a decent accountant or go to Customs And Excise web site. My local VAT office was very helpful.
Being VAT reg opens the door to a lot of corporate customers.

It's all good.



fellow guest

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

got to be done but good?


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

Its all good.


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 Post subject:
PostPosted: Mon Feb 23, 2004 3:55 am 
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
There are now simplified rules for VAT.
A flat rate has been set for the taxi trade you pay a percentage of your gross turnover around 10%. No input tax, output tax calculations, just one annual calculation.
Charge VAT where appropriate, commercial customers and charge inclusive ie, meter rate on cash work and personal accounts. The is a limit on the turnover, about £500k, this scheme is designed to help small businesses expand. Ask a decent accountant or go to Customs And Excise web site. My local VAT office was very helpful.
Being VAT reg opens the door to a lot of corporate customers.

It's all good.



fellow guest

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

got to be done but good?


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.


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 Post subject:
PostPosted: Mon Feb 23, 2004 5:57 am 
Anonymous wrote:
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.



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.


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 Post subject:
PostPosted: Mon Feb 23, 2004 5:58 am 
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
There are now simplified rules for VAT.
A flat rate has been set for the taxi trade you pay a percentage of your gross turnover around 10%. No input tax, output tax calculations, just one annual calculation.
Charge VAT where appropriate, commercial customers and charge inclusive ie, meter rate on cash work and personal accounts. The is a limit on the turnover, about £500k, this scheme is designed to help small businesses expand. Ask a decent accountant or go to Customs And Excise web site. My local VAT office was very helpful.
Being VAT reg opens the door to a lot of corporate customers.

It's all good.



fellow guest

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

got to be done but good?


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

Its all good.


at six grand sleaping pills are cheaper?


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 Post subject:
PostPosted: Mon Feb 23, 2004 6:07 am 
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
There are now simplified rules for VAT.
A flat rate has been set for the taxi trade you pay a percentage of your gross turnover around 10%. No input tax, output tax calculations, just one annual calculation.
Charge VAT where appropriate, commercial customers and charge inclusive ie, meter rate on cash work and personal accounts. The is a limit on the turnover, about £500k, this scheme is designed to help small businesses expand. Ask a decent accountant or go to Customs And Excise web site. My local VAT office was very helpful.
Being VAT reg opens the door to a lot of corporate customers.

It's all good.




fellow guest

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

got to be done but good?


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.




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 :wink:


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 Post subject:
PostPosted: Mon Feb 23, 2004 8:17 pm 
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.


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 Post subject:
PostPosted: Tue Feb 24, 2004 2:40 am 
Anonymous wrote:
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


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 Post subject:
PostPosted: Tue Feb 24, 2004 11:36 pm 
Offline

Joined: Sun Sep 21, 2003 12:04 am
Posts: 725
Location: Essex, England
If you paid 10% of your turnover you would be worse off then doing it properly!

_________________
There is Significant Unmet Demand for my Opinion.


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 Post subject:
PostPosted: Tue Feb 24, 2004 11:41 pm 
Offline

Joined: Sun Sep 21, 2003 12:04 am
Posts: 725
Location: Essex, England
Anonymous wrote:
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.



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.

_________________
There is Significant Unmet Demand for my Opinion.


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 Post subject:
PostPosted: Wed Feb 25, 2004 9:51 am 
Andy7 wrote:
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.


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


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