Taxi Driver Online

Because deregulation sound scary to thicko councillors.

_________________
IDFIMH

Only if customs are reading. Wouldn't that sort of money in any month require VAT registration?

_________________

http://wingsoverscotland.com/ http://www.newsnetscotland.com/

No..

_________________
Justice for the 96. It has only taken 27 years...........repeat the same lies for 27 years and the truth sounds strange to people!

It would certainly be liable for capital gains

_________________

http://wingsoverscotland.com/ http://www.newsnetscotland.com/

When?

_________________
Justice for the 96. It has only taken 27 years...........repeat the same lies for 27 years and the truth sounds strange to people!

The Law

5.

A person is required to be registered for VAT if that person makes taxable supplies in excess of the registration threshold. For example In 2002 the registration threshold was £55,000. A person is liable to register from the end of the month in which the value of taxable supplies for the preceding year exceeds the registration threshold (see paragraph 1 Schedule 1 VATA). HMRC can register a person if that person's taxable supplies exceed the threshold whether or not the person notifies HMRC (paragraph 6 Schedule 1 VATA).

6.

By section 94(2)(a)VATA the provision by a club, association or organisation (for a subscription or other consideration) of the facilities or advantages available to its numbers is deemed to be the carrying on of a business by the club, association or organisation. Section 46 VATA provides for registration in the name of an association.

7.

By section 5 VATA anything which is not a supply of goods but is done for a consideration is a supply of services.
____________________

If a business owns an office and it's sold at a profit then it would be liable for capital gains tax.

But if the businesse's business was buying and selling property then because that was its main trade then any profits would come under income tax rules rather than capital gains.

So if a business was buying and selling taxi plates then that would be subject to income tax, whereas if it was a one off transaction by a business providing taxi services then it would be liable for capital gains.

There might be something similar with VAT - the one-off plate sale may not count as a "supply".

_________________
Taxi Driver Online
www.taxi-driver.co.uk

And?

_________________
Justice for the 96. It has only taken 27 years...........repeat the same lies for 27 years and the truth sounds strange to people!

Well if it wasn't a "taxable supply" as per the definition above then it wouldn't count towards the threshold?

_________________
Taxi Driver Online
www.taxi-driver.co.uk

Something for you to think about.... A man buys a plate in 2000 for £10,000 and sells it in 2001 for 14,000........... and then purchases another plate for 14,000 and then sells it in 2002: for19,000 and so on up till today,......... when he eventually sells for good, how much will he pay tax ?

_________________
Justice for the 96. It has only taken 27 years...........repeat the same lies for 27 years and the truth sounds strange to people!

If he's bought and sold that many plates, he could be considered to be in the business of buying and selling plates. He would then pay income tax at the usual rates on the profit, each year he made a profit doing it. If not considered to be in the business of buying and selling plates, capital gains would be due each year. I'll leave the math to someone else.

_________________

http://wingsoverscotland.com/ http://www.newsnetscotland.com/

VAT is different. The registration threshold is calculated on turnover, not profit. You could make a loss and still end up paying VAT

_________________

http://wingsoverscotland.com/ http://www.newsnetscotland.com/

This case I posted recently explains the status of VAT in respect of selling plates. However any financial return must take into account the VAT threshold for that particular year and whether or not such a sale exceeds the threshold when factoring in the gross annual turnover of the business.

http://taxi-driver.co.uk/phpBB2/viewtop ... manchester

Regards

JD

_________________
Copyright notice © The contents of this post are copyright of JD and are not to be reproduced outside of TDO without written permission.

If you sell a taxi and you include a local authority hackney carriage licence plate, then you are making a single supply of goods. The full selling price for which is the total amount charged for the vehicle and licence plate. You must account for VAT.

http://www.hmrc.gov.uk/

Regards

JD

_________________
Copyright notice © The contents of this post are copyright of JD and are not to be reproduced outside of TDO without written permission.

According to the law it would require VAT registration, why do you say no? There is an exemption clause under certain situations but it might not apply in this case?

Regards

JD

_________________
Copyright notice © The contents of this post are copyright of JD and are not to be reproduced outside of TDO without written permission.