Taxi Driver Online

You take £600 in fares in a week and you owe the VAT man £100 of VAT. You need to spend £600 on vatable goods to get it back again.
My quarterly VAT bill is usually around £3,000/4,000!

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Grandad,

Agreed but how much would your VAT bill be if you weren't registered?

If I were not registered I would not have a VAT bill. All VAT that I had paid out would be part of the expenses of running the business and allowable against profit so I would get it back that way.

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Grandad,

Still agreed, but how much VAT would you have paid on what you bought in? It still hits your bottom line.

No lowering of the VAT threshold in budget. Phil Hammond.

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Former taxi driver

T.F for that, I don't think many small Business's could have survived either absorbing paying that extra VAT up to £14000 a year, nor would they likely get away with adding 20% percent on their fares instead or a compromised bit of both.....their aint a huge nett profit to be had even if you gross around the current threshold...and even if they tinker with incremental VAT thresholds in a few years time it'll still feck it up for us small Businesses.

The problem with the VAT threshold is that if we had never had a threshold we would have been accustomed to putting VAT on everything, but now that we are used to an £85000 threshold it makes it impossible to accept any change without real pain, you just can't change the rules halfway through the game.

It does not create a Glass Ceiling as they say, If the work was there we'd mostly all take it and worry about the VAT consequences afterwards, but once you go VAT it's hard to go back.

held for 2 years only

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

Held for at least 2 years. He didn't say it would change in 2 years time.

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Grandad,

I'm guessing Hammond will be History in 2 years and Brexit will be focusing minds on other things by then, no point in the Bremainers argument that the VAT threshold level here in the UK is much bigger than other the EU member states because we'll not have any Other EU member states to be compared with..We'll be out.