VAT on Labour

Cleanest solution? Be above board all the way! Make money, pay tax and sleep easy at night!

HMRC are spinning up more and more special suits to go after the “small man”…..Dishy Rishi has to stick those leaves back on the money tree that he ripped off for the pandemic! The big boys can afford specialist lawyers and specialist accountants!

* soap box is free now!!!
Top two spots on today's most agreeable paragraphs list.
 
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Top two spots on today's most agreeable paragraphs list.
Top two spots on today's most agreeable paragraphs list.
I’m a VAT registered one man band and very exposed to IR35 regulations. Thankfully, all determinations to date have been “outside IR35” predominantly because I can demonstrate that I “provide and outcome/deliverable for a price and I am not a hidden employee”! Billing my VAT, paying my company and personal taxes keeps me “under the radar”. It was tempting to put my van “through the company” bit why wave red flags, eh?!! When I look at fellow contractors who bury phrases like “no tax” on their company name….jeez wept!!

Why thumb your nose at some small civil servant (on a crappy salary) who has more legal powers at his disposal than any other government agency?

Tax is the only area of law where the accused has to prove his innocence! Remember, they got Al Capone for tax evasion, not gansterism!
 
In all honesty my post above was just a joke it does us no real good to do jobs "for cash", I can't pay my trade accounts, rent, van, insurance, gas safe, advertising, staff or tax bills with cash and who has cash these days anyway? If we do everything above board and pay our dues I can sleep well knowing the money I've got left is rightfully mine.

Just stick it through the ‘wash’ like the super rich do. After spending a couple of hours sat on the grass outside the Monte Carlo Casino people watching I have no trouble with getting it where I can.
 
Just stick it through the ‘wash’ like the super rich do. After spending a couple of hours sat on the grass outside the Monte Carlo Casino people watching I have no trouble with getting it where I can.
I can't afford the washing machines they use.
 
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So what’s to stop a service provider saying to the customer I’ve got a nice painting on Ebay for £2000 Buy It Now. If it sells I can do the job this afternoon for free.
 
So what’s to stop a service provider saying to the customer I’ve got a nice painting on Ebay for £2000 Buy It Now. If it sells I can do the job this afternoon for free.
Nothing! And eBay sellers are coming under increasing scrutiny - one of the joyous little task forces HMRC is spinning up. Lots of fuzzy logic driving their computerised interrogation methods.
 
Nothing! And eBay sellers are coming under increasing scrutiny - one of the joyous little task forces HMRC is spinning up. Lots of fuzzy logic driving their computerised interrogation methods.
But neither have broken the law, said service provider turns out to be a long lost old mate doing me a favour and I really like the painting he had for sale.
 
No law broken at all…..and a compliant tax return will demonstrate that!
 
We should embrace a barter economy, a favour for a favour, I don't think MP's have to pay tax on the ones they receive do they?
 
We should embrace a barter economy, a favour for a favour, I don't think MP's have to pay tax on the ones they receive do they?
There’s a few extras available, just need to be careful
 
We should embrace a barter economy, a favour for a favour, I don't think MP's have to pay tax on the ones they receive do they?
Ah, there is one of those - think it is called “Letts” or something. So, you trade “letts” when exchanging skills/Labour!
 
Ah, there is one of those - think it is called “Letts” or something. So, you trade “letts” when exchanging skills/Labour!
There was a scheme running in a town near me, lots of takers. I think it collapsed due to the accountants, lawyers thinking they could get a tradesman for a week in exchange for a 20 minute consultation
 
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There was a scheme running in a town near me, lot’s of takers. I think it collapsed due to the accountants, lawyers thinking they could get a tradesman for a week in exchange for a 20 minute consultation
Ah, “value” is measured by the recipient, rarely the doner!
 
For warranty you need to use a vat registered garage I believe.
I have been told this too by every dealer I have used....be it any manufacturer. In fact a garage told me this week they couldn't do warranty work on a Honda as they're not VAT registered.
 
I have been told this too by every dealer I have used....be it any manufacturer. In fact a garage told me this week they couldn't do warranty work on a Honda as they're not VAT registered.
Every day is a school day! Anyone know why this is?
 
I'm reminded of a salutary tale. Back in the 1990,s we were selling Kitchen appliances, with several branches throughout the midlands, all in small factory units, direct to the pubic.

One local council tried everything to stop us, and after a particularly nasty war of attrition, they offered us a plum high street location, on silly terms.

It transpired, that the previous occupant who had been there for 23 years, and also sold brown & white goods, was well known for offering discounts for cash.

One day, an attractive lady appeared in the shop, interested in a cooker, and the salesman (Owner) offered to knock the VAT off.

The Owner was promptly arrested, got 3 years, business busted, lost home, wife etc....... How the mighty fall!

Needless to say, we always scrupulously paid our VAT in full, and despite the many approaches from customers to "knock the VAT off" and the retelling of the above tale, everyone to a man, said in protest and surprise, "But I don't work for HMRC". No, I would reply, and "neither did the attractive lady.".............
 
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