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.
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