Taxi Driver Online

Will this have an effect on some of the larger companies, or even those just over the threshold
Could some go bust or cut the numbers of vehicles
Dont forget if you drive for a VAT reg company you have also taken a 2.5% pay cut

I don't follow your logic

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Note to self: Just because it pops into my head does NOT mean it should come out of my mouth!!

FFS this is Skippy, no-one follows his logic.

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IDFIMH

Here we go
Once upon a time
Right you rent a radio or cab from an office, that company is vat registered, so they give you an invoice showing the vat or should,
all fares are subject to vat so you not only loose out by having to pay extra to that office you also loose out on part of the fare as well

You only pay the VAT element (to the VAT man) on the fare if you, as a self employed driver, are VAT registered. Most ph companies here don't give you a receipt for your rent unless you ask for it and the rental charge is including the VAT element already

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Note to self: Just because it pops into my head does NOT mean it should come out of my mouth!!

Then they are breaking the law
I think there is a high court case going on at the moment or has just ended regarding receipts, how do you claim it back off the tax man without proof??

You ask them for a receipt if needed. You only get a VAT receipt if you ask for it and they only have to be VAT registered if they meet the VAT threshold. You don't need a VAT receipt if you are not VAT registered because you can't claim the VAT back if you aren't. I think you need to read the high court case first before you comment on it

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Note to self: Just because it pops into my head does NOT mean it should come out of my mouth!!

I'm on about company's who are over the 73K threshold so a cab or pH company with 5 or 6 vehicles could easily go over it

Our companies have over 300 vehicles and are all VAT registered but what is the point of them issuing a VAT receipt when you can't claim it back as a self employed drive

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Note to self: Just because it pops into my head does NOT mean it should come out of my mouth!!

We are a VAT registered company Skippy. All our contract work is subject to VAT. Whilst on contract work, all our drivers are on the books. If the drivers wish to do any other work they are self employed for this purpose and they pay for the use of the vehicle. The amount that they pay the company for the use of the vehicle is subject to VAT. The fares that they take are their own fares and do not come through the company so they are not subject to VAT. As a VAT registered company it is my understanding that any receipt that I issue to the drivers for their use of the vehicle must show the VAT element and the VAT number. They may not be able to reclaim the VAT from the VATMAN but they can claim it as an expense in their tax return to the TAXMAN.
So here is an example of how it works in my company.
A driver works 15 hours in a week on a school contract at £7.50 per hour and I pay him £112.50. This is below the income tax threshold and the national insurance threshold so there are no deductions.
The driver then wants to work on his own account on the Friday night and Saturday night. He drives a total of 200 miles and takes £300. He will have worked around 13 hours on the 2 nights. He would then pay me £0.33 for every mile including VAT so that would be £66.00 Which is £55.00 and £11.00 VAT. So the driver will take home £234 from his £300. He has no other expenses so he would need to pay tax and national insurance, subject to anything remaining out of his income tax allowance, on this sum.
The figures used are for illustration only.

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Grandad,

I was talking to a driver the other day who had just become VAT registered, I told him he was a tvvat because he didn't earn over the threshold, he said "I know you don't have to earn over the threshold to claim the VAT back on rental and fuel," I've looked into it and it's worth a whirl.

The driver in question was paying VAT on his car rental and fuel which added up to over £70 per week.

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Do not argue with an idiot. He will drag you down to his level and beat you with experience.

Believe me, don't get Mercury X2

I hope he keeps good records because the VAT man will want his 20% from all those fares he has to do to buy the fuel and pay the rent so he can claim his VAT back

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Note to self: Just because it pops into my head does NOT mean it should come out of my mouth!!

I think Mr Midlander might well be right.

If you register for VAT, even if under the threshold, you pay 16.667% of your takings to the VAT man [£120 of takings includes £20 in VAT (£100 + VAT = £120) - therefore the VAT percentage of your takings is 16.667%, NOT 20%]

Being registered for VAT also allows you to reclaim VAT on purchases, so you can reclaim that too.

Although you're paying the VAT man, your taxable figure for Schedule D is then income net of VAT less expenses net of VAT.

So all in all, your whole tax bill [Schedule D and VAT] could well be lower than if you absorbed the VAT and just paid Schedule D only.

In fact I have just worked it out in fugures and what I have written above is TOTAL GARBAGE!!

Mr Skippy41!! Why the f*kc did you start this stupid thread?

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Kind regards,

Brummie Cabbie.

Type a message, post your news,
Disagree with other members' views;
But please, do have some decorum,
When debating on the TDO Forum.

Just to let you know what could happen if it goes tits up
and its better than one of those nintendo brain trainers

You can use the flat rate scheme if you want. It makes things easier.

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Grandad,