Franglais:
I’m wondering what VAT and Income tax will be lost by the Government?
How so?
Sent from my SM-G930F using Tapatalk
No VAT will be lost by the government, in fact given the abuse of the flat VAT rate the government will actually gain more from it. They’ll also gain more in income tax too, at least £400 for every self employed driver who was using the “small earnings and dividends” method of getting money out of their Ltd due to the fact they can no longer benefit from the £2000 dividend tax allowance. They’ll also get more employers NI too, an additional £220 per self employed driver as every business gets a £2000 employers NI allowance they can offset against their employers NI bill.
So in short for every Ltd self employed driver that ends up on PAYE the HMRC will benefit to the tune of at least £620 per driver.
robbo99.:
It depends what a grace period is, HMRC tend to take multiple years to actually do anything when it comes down to tax avoidance schemes, as they call them.
There is no grace period. IR35 has been in place for decades.
Franglais was questioning if there would be a grace period for the new changes, I was referring to the fact that HMRC sit on their hands when it comes to tax avoidance schemes, no grace period as far as I’m concerned, just appears to be a form of entrapment on HMRC’ s behalf.
“Entrapment”?
How so?
Are you suggesting that HMRC prioritise looking at all new schemes to ensure no-one taking a chance on one gets caught out?
Surely self assessment is to avoid us having an expensive massive bureaucracy checking each individual minutely?
Anyone trying out some novel means to pay less tax is not being “entrapped” by the tax man.
Franglais:
I’m wondering what VAT and Income tax will be lost by the Government?
How so?
Sent from my SM-G930F using Tapatalk
No VAT will be lost by the government, in fact given the abuse of the flat VAT rate the government will actually gain more from it. They’ll also gain more in income tax too, at least £400 for every self employed driver who was using the “small earnings and dividends” method of getting money out of their Ltd due to the fact they can no longer benefit from the £2000 dividend tax allowance. They’ll also get more employers NI too, an additional £220 per self employed driver as every business gets a £2000 employers NI allowance they can offset against their employers NI bill.
So in short for every Ltd self employed driver that ends up on PAYE the HMRC will benefit to the tune of at least £620 per driver.
robbo99.:
It depends what a grace period is, HMRC tend to take multiple years to actually do anything when it comes down to tax avoidance schemes, as they call them.
There is no grace period. IR35 has been in place for decades.
Franglais was questioning if there would be a grace period for the new changes, I was referring to the fact that HMRC sit on their hands when it comes to tax avoidance schemes, no grace period as far as I’m concerned, just appears to be a form of entrapment on HMRC’ s behalf.
“Entrapment”?
How so?
Are you suggesting that HMRC prioritise looking at all new schemes to ensure no-one taking a chance on one gets caught out?
Surely self assessment is to avoid us having an expensive massive bureaucracy checking each individual minutely?
Anyone trying out some novel means to pay less tax is not being “entrapped” by the tax man.
Many examples but let’s take the loan charge as an pointer. Many people who used the loan charge had this A ok’d by HMRC. They quite clearly noted on their self assessments exactly how they were being paid. HMRC let this go on for year after year and then decided that the loan charge was indeed a tax avoidance scheme. They then retrospectively went back upto 20 years with tax bills, ( now reduced to 10 years after an enquiry into the way the loan charge had been handled ), bankrupting people and a handful of suicides have been directly linked to the way HMRC treated these people.
Now to me the loan charge was dubious to say the least but if HMRC conduct their selves in the way they have, then that appears to me to be a form of entrapment. Oh well there’s my reply, just in the wrong place!
Franglais:
I’m wondering what VAT and Income tax will be lost by the Government?
How so?
Sent from my SM-G930F using Tapatalk
No VAT will be lost by the government, in fact given the abuse of the flat VAT rate the government will actually gain more from it. They’ll also gain more in income tax too, at least £400 for every self employed driver who was using the “small earnings and dividends” method of getting money out of their Ltd due to the fact they can no longer benefit from the £2000 dividend tax allowance. They’ll also get more employers NI too, an additional £220 per self employed driver as every business gets a £2000 employers NI allowance they can offset against their employers NI bill.
So in short for every Ltd self employed driver that ends up on PAYE the HMRC will benefit to the tune of at least £620 per driver.
robbo99.:
It depends what a grace period is, HMRC tend to take multiple years to actually do anything when it comes down to tax avoidance schemes, as they call them.
There is no grace period. IR35 has been in place for decades.
Franglais was questioning if there would be a grace period for the new changes, I was referring to the fact that HMRC sit on their hands when it comes to tax avoidance schemes, no grace period as far as I’m concerned, just appears to be a form of entrapment on HMRC’ s behalf.
“Entrapment”?
How so?
Are you suggesting that HMRC prioritise looking at all new schemes to ensure no-one taking a chance on one gets caught out?
Surely self assessment is to avoid us having an expensive massive bureaucracy checking each individual minutely?
Anyone trying out some novel means to pay less tax is not being “entrapped” by the tax man.
Many examples but let’s take the loan charge as an pointer. Many people who used the loan charge had this A ok’d by HMRC. They quite clearly noted on their self assessments exactly how they were being paid. HMRC let this go on for year after year and then decided that the loan charge was indeed a tax avoidance scheme. They then retrospectively went back upto 20 years with tax bills, ( now reduced to 10 years after an enquiry into the way the loan charge had been handled ), bankrupting people and a handful of suicides have been directly linked to the way HMRC treated these people.
Now to me the loan charge was dubious to say the least but if HMRC conduct their selves in the way they have, then that appears to me to be a form of entrapment. Oh well there’s my reply, just in the wrong place!
noisycarl:
It would be nice if HMRC went around closing the loopholes that billionaires and corporations use, that would really bring some cash in, but once again it’s the common man who is expected to pay while the rich buy another yacht
That’s why they let the little man fiddle: if he’s fiddling £20 a week, he’s less likely to vote against the rich who fiddle millions.
If the Tories are grandmasters of “fiddling millions” when it comes to unpaid taxes then Labour grandees are specialists when it comes to making sure the British Taxpayer ends up footing their bills for years and years after leaving office (in the case of Blair) or even Corbyn fiddling a full financial year’s worth of Privy Council Pay Enhancement out of “Parliamentary Unnecessary Expenses”…
Phillip Hammon’s decision to “support white van man” - was one of the things that permitted May’s Tories to hold on in the 2017 election, let us not forget.
Non-workers - always want more benefits, but Workers, especially those earning above the minimum wage - always want to pay LESS taxes rather than more.
Even people like me.
ESPECIALLY people like me.
For the meantime however, I’ll continue to compensate for the large amount of un-offsetted PAYE taxes I pay - by refusing to work for near-minimum wage hourly rates.
My experiement of 2011-2014 with Tax Credits - is well-and-truly OVER.
It took me over a year of low earnings before I even qualified for tax credits, and having taken a full time job around halfway through a financial year - I was then expected to pay back tax credits I’d already received for the FIRST six months of that tax year. So it isn’t a “benefit” - it is a LOAN if you do that naughty thing - and actually look for, and get a job!
Our tax, pension, and benefits system - STINKS.
It encourages high earners “to avoid as many taxes as possible”, it encourages those on benefits - to STAY on benefits, and we’ll only find out in the years to come that the “Pension we thought we were going to get” - is long gone.
Been harping on about this for ages, letters back and forth to HMRC, but acting for my wife who is under an umbrella. She gets her work from an agency, who doesnt
( supposedly ) have a payroll dept, so pays an amount to an umbrella co, who then do the deductions…BUT…The Agency does not pay enough, and obviously if she asks for more, they will tell her to go somewhere else. So the umbrella in their wisdom, try and recoup money from her by deducting Employers N.I. ( upon doing checks, the umbrella is in fact her employer ) she is also being deducted an Apprenticeship levy ( supposedly to put into a pot to support an apprenticeship scheme, but nothing to do with her…HMRC had no comment on that…But in the latest letter, they have stated that she is not liable for Employers N.I. and being as she is retired and drawing a pension, doesnt pay N.I. herself…she also has to pay the umbrella their fees ( although they call it a margin ) again no response about that.
In my opinion, she should have her daily fee, determined by the agency, times how many days she works, less tax leaving a net income as it would be working directly for an employer, but they will be getting a letter soon asking for the employers N.I. which has been taken illegally to be refunded, which amounts to a period of around 5 years…and a county court if they dont pay.
Sand Fisher:
In our case HMRC will lose all the VAT we pay over to them and recover less in income tax. Very bright Sajid. dohhhh!
No they won’t lose any VAT you paid to them, it just gets paid by the next person up the chain. They didn’t gain from the VAT you paid because the VAT you charged your customer, the agency, was offset against their VAT bill for the VAT they’d charged their client. But if you knew anything about business and being properly VAT registered and running a proper VAT account instead of just being VAT registered to gain more money in your pocket from the flat VAT rates you’d know that.
Quite clearly you have no idea how VAT works and are just another example of someone who claims to be a business whilst knowing no more about being a business than an employee and are just yet another “mickey mouse” self employed.
Thank’s for demonstrating that you both can’t read and can’t understand. No wonder you work for Howdens. I am not self employed I work with others for a company that supplies staff to agencies and not all in the transport industry. Plank.
Oh, so Conor maintains that Ltd Co’s set up on the flat rate VAT scheme are not running a proper VAT account. Guess what, every single application for the flat rate scheme was authorised by HMRC! If there’s money to be had and it’s authorised by our glorious tax authority, then what is wrong with that? Green eyed monster seems to be surfacing.
Sand Fisher:
In our case HMRC will lose all the VAT we pay over to them and recover less in income tax. Very bright Sajid. dohhhh!
Thank’s for demonstrating that you both can’t read and can’t understand. No wonder you work for Howdens. I am not self employed I work with others for a company that supplies staff to agencies and not all in the transport industry. Plank.
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You said they’d lose the vat “WE” pay over to them so by we it can be assumed you meant you.
robbo99.:
Oh, so Conor maintains that Ltd Co’s set up on the flat rate VAT scheme are not running a proper VAT account. Guess what, every single application for the flat rate scheme was authorised by HMRC! If there’s money to be had and it’s authorised by our glorious tax authority, then what is wrong with that? Green eyed monster seems to be surfacing.
They’re not. They’re not keeping a record of every VAT receipt and running a seperate VAT account in their accounting. The flat VAT scheme means they don’t have to.
No green eyed monster from me. I’m currently sat at home on pay because I get 33 days a year paid holidays and when I retire I’ll have more of a pension too, both things Ltd drivers lose for that extra quid an hour. Also I’m not going to be looking over my shoulder wondering if I’ll get a demand for tax and NI through the post from HMRC.
robbo99.:
Oh, so Conor maintains that Ltd Co’s set up on the flat rate VAT scheme are not running a proper VAT account. Guess what, every single application for the flat rate scheme was authorised by HMRC! If there’s money to be had and it’s authorised by our glorious tax authority, then what is wrong with that? Green eyed monster seems to be surfacing.
They’re not. They’re not keeping a record of every VAT receipt and running a seperate VAT account in their accounting. The flat VAT scheme means they don’t have to.
No green eyed monster from me. I’m currently sat at home on pay because I get 33 days a year paid holidays and when I retire I’ll have more of a pension too, both things Ltd drivers lose for that extra quid an hour. Also I’m not going to be looking over my shoulder wondering if I’ll get a demand for tax and NI through the post from HMRC.
But your point was the VAT. Good for you with your situation but we are talking about the FRS VAT scheme, not holiday pay, pensions and tax bills.
FRS VAT is a totally legitimate scheme ideal for labour only services. So it is a proper VAT scheme. Even better when in the past bags full of money gained for doing next to nothing for it.
