The Problems With Value Added Tax | VAT RANT
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- Опубліковано 10 жов 2021
- Roger points out the problems with UK Value Added Tax in his latest rant.
Further reading.
▶ The UK’s VAT Rate Explained:
www.kashflow.com/uk-vat
▶ VAT rates for goods and services:
www.gov.uk/vat-rates
▶ What are the Most Serious VAT Problems?:
bit.ly/3lv99S2
▶ Free UK VAT calculator:
www.vatcalculator.co.uk
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#VAT #ValueAddedTax #TaxRant
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Roger's Rants make me feel sane in an insane world.
This video left me with immense sympathy for Mrs Bisby. To complete yearly tax returns whilst Roger was ranting in your ear about the VAT is inspiring. 😔 You must be a truly remarkable and resilient lady. The subscribers of Skillbuilder salute you ma'am! 👏👸
This is a better summary of the nuances of VAT rules than a significant number of accountants have a working knowledge and is better communicated than a significant proportion of accounting lecturers/trainers that I’ve come across. Great video.
Value Added Tax, Income Tax, Fuel Tax, Road Tax, Council Tax, National Insurance Tax, Capital Gains Tax, Inheritance Tax.......... What's the point of working in the UK????
Sugar tax now too.
thats why I'm finishing my house and selling up. moving to another country
true. i like the idea that when all these super rich types congratulate them self's on taxing the pour and dodging it them self's, they relies the country is falling apart because we have all left or there are no skills to repair the infrastructure.
Bloody hell they will bring back window tax if you keep on😂🤣😂🤣😂🤣
@@anthonyworthington6495 Smashing idea!
Gosh, you learn something new everyday. I really didn’t know that my clothes were a luxury item. You wouldn’t know just by looking at them. Brilliant video Roger. Please keep em coming.
i think Roger should have a preservation order put on him, to protect and preserve these blogs. perhaps category A listed. not allowed to change. keep up the good work!
I don’t do pricework. I agree a day rate with the customer, they buy all the materials. I get a weekly wage. No harm done, no vat.
Your partner/friend could open a DIY supply business which could be VAT registered that you suggest your customers use. That way your partner/friend could make a profit(and pay VAT) on all goods used while you stay under the threshold.
You lose a lot of margin there. Most suppliers will give discounts to regular customers, some as much 40%. This would all be your profit.
@@stepbackandthink yeh, but then I'd have to charge vat, which is another 20% on the price and I'd have to deal with the paperwork. I'd lose a lot of customers. I'd rather earn a bit less, keep the work coming in (I've got at least a year ahead) and not have the stress. And, I don't like bullshitting the customers by charging them extra for materials.
This is absolutely unhinged. Love it.
How does this guy thing roads are paid for, lmao
@@redemptionwins Did I say I didn't like tax? I love tax. Did you watch the video? Thought not. If you have any knowledge of economics you will know that an essential feature of any tax is that it is easy to collect, it has to be fair and it has to be simple. This tax is neither
Yeah VAT or GST in New Zealand was really created to catch people dodging income tax.
@@SkillBuilder I was always told that a good accountant saves you more than you pay them
And for £50/month saves all the headaches too 🤣
@@redemptionwins vehicle tax is collected but not spent on the roads as it should otherwise we would have the best roads in Europe instead of sending Bodgeit bot to fill in the pot holes that last for a couple of months if your lucky
Absolutely brilliant - informative as ever - delivered faultlessly. Keep the rants coming, Roger...please!👍👍👍
One of the best rants out there, Rog! Outstanding! Just love it! More, more, more!!!!
Love your rants Roger hehe. One thing though; although we got lumbered with VAT when we joined the EEC in '73, it only replaced the Purchase Tax we already had, which was actually set at a much higher rate! Was around 30% was Purchase Tax. Up to 50% on some things at one point (cars/vans were one of them I think).
Yes I am sure that we did well out of it. I just think it is a complicated system and it does create this unfair situation with people who fiddle their books to stay under when they are clearly earning more.
@@SkillBuilder True. Is needlessly complicated.
I set up a company in Belgium in 2007. The VAT registration limit is very much lower than UK. I think it is about €10,000 so it normal to be VAT registered.
Thanks for being so informative about Villainous Applied Torytax. I never realised it was only inflicted upon things deemed luxurious . A few years ago i paid a roofer £2.4k to fix a leaky hole in my roof which was caused by a clumsy twerp aerial fitter putting his size 10s though the sarking board, however the roof repair job actually cost £2k in reality and the other £400 obviously VAT demand for the luxury roof leak tax, and i should remain truly grateful to the rain gods it wasn't a deluxe special roof leak which would have left me drowned in VAT debt but still smiling due the luxury of it all :/
What the fuck are you on about
Yeah and the if you buy horse food, no tax! Because horses might be working animals ...
More like some toff didn't want to pay for his kids pony!
Roger, now we all know you are really an accountant!!
Excellent VAT lesson...time to put the tools down and become a full time presenter...
Yet another brilliant rant! Keep it up!
Nice one Roger very good video. Was interesting from start to finish.
Amazing channel 👍🏽 keep up the good work
Vat lessons for my younger child!! Perfect! Thanks Roger. As always a pleasure to see your videos.
That worries me. I was only having a bit of fun here and now I feel responsible for education.
Sorry Rog, rant was too short but truly brilliant. 👍👍👍
Another VAT free item is new housing which is often abused, very often more building materials than is actually required for a new house is purchased and ends up on a cash job somewhere.
Of course I would never dream of doing such a dastardly deed, my guilty concience would keep me awake all night 😂😂😂🤣🤣🤣
I was wondering how Joe got his materials, he buys them off Bill the new builder for cash!
Tiny Tony
So true, I did think about that but maybe I will cover it in money laundering
@@SkillBuilder money laundering the best machine is a Miele the notes come out sparkly clean and a quick wiz through the tumble dryer nice and crisp 🤭 apparently 😂🤣
The bizarreness of not taxing new builds also incentivises some builders to demolish older houses and build new than refurbishing / renovating / extending the old house.
thanks for that Roger, very informative, makes me glad I spent my working life in the Middle East, and did not have to bother with UK VAT man.
Love these rants, we need more 😁
This channel has powered up 1000% thanks to Rodger's rants. 👍👍👍
These videos are really great! I still don’t get the whole “vat registered” thing and why/how you have to charge vat on labour (?) but can claim vat back on things (?). Blows my mind 🤯
And here we have a perfect example of a bloke who did/does a proper job explaining something clearly, concisely and with great intelligence whilst I suspect many people with degrees doing office jobs would struggle to find their arse with either hand.
The main problem was too many people shouting "What about us? We're special." etc etc. As a retired accountant, I sort of enjoyed VAT (perverse I know) and sorting clients out. If there was no threshold, no exemptions, it would make it easier. Of course then people would need to be paid more, so high inflation will ensue while it all settles down. You're never going to get rid of the cash in hand jobs, but the customer does not have any assurances that a job will be done well and can't sue if it goes belly up. Try looking at the gold scheme and then figure out what is second hand gold, before moving on to charities and figuring out if a council is commissioning a SLA (service level agreement) or it is in fact a grant with restrictions. Fun times.
Love this channel, just started watching from Australia. I lot of the building practices over there are same same but different. We have a 10% gst (vat). It is pretty much on everything except fruit an vegetables an medical services..
Welcome to our channel. It is good to have viewers from around the world and we learn a lot from them.
Best way to stay under the VAT limit it to get the customer to buy the materials for the job, I know many self employed tradesmen that do it that way so it keeps them on the good side of VAT
The Jaffa cake case was notable when I worked for Customs and Excise, as it was determined that cakes start out soft and go hard with age whereas biscuits start out hard and go soft with age. No jokes about all men being Biscuits please!!!!
Any advice or input on how to file your return on Reverse Charge and Flat Rate Scheme? Obviously the easy answer is don't do FRS but im interested to know if you can do both?
Little bit of trivia regarding the Jaffa incident. What it ultimately comes down to is whether it goes hard or soft when left outside. Biscuits go soft, cake goes hard. Jaffa cakes stiffen when left out and this was the winning argument for the case :) or so I was told.
Roll A few people have cited that detail but I think the jury made up their minds during the long tea breaks.
Excellent thanks again Roger 👍
Excellent video.... AND ,.. Very well said my friend.
Thank you.
I never realized the links in the chain get to get the prior VAT back. I would think if they could end all the paperwork processing that must involve the cost savings would let them drop the VAT to 10%
Outstanding explanation of the rules and complexity of VAT. But your discussion of cake and pasties left me with a question. Is there VAT on the raw materials and processing for ingredients for a VAT exempt food item? Like your cement example, harvested wheat ( including pesticides), milled flour, bulk sale, packaged sale, and so on. Especially since the whole chain of events could lead to a product subject to VAT - with the press of a microwave button.
Essentially there is No Vat on the entire food chain. this is achieved by farmers being zero rated producers but still being registered for VAT so they can claim back the VAT of goods required to make that produce. So they buy good at 100 plus 20 Vat - sell good at 200 with no vat and claim back the 20 VAT they paid, netting the full 100. Most farmers tend to be net reclaimers of VAT as a result.
I paid cash from materials at my suppliers £680 for roofing bits. I got the invoice from the suppliers but the accountants said because it didn't come out the business bank account I xan nit even though it says my business name on the invoice.. is this correct?
My roofing business is nearly in its 10th year. For the first time the Vat man owes me money. Still waiting for it and my next quarterly is next month.
Hate to say, you're on their radar now, get your books up to date!
Roger, VAT is a regressive tax and this is the one aspect that you missed out.
Whereas, income tax is not regressive, the more you earn the more you pay.
I think societies would be better off with only progressive taxes. Regressive taxes are designed to keep the poor, poor and the wealthy, wealthy.
(PS, same goes for council tax, another hugely regressive tax)
Thank you, we always need a skewed socialist view! Thankfully, in this country, we're allowed to have and express our differing views!
Income tax is too ill-defined though. It's easy to shelter income. It should be just a sales tax, which is inherently progressive.
@@icarossavvides2641 nought wrong with being social...
Easy way to tell the difference (though time is involved) between a cake and a biscuit: Biscuits go soft when stale, cakes go hard. Jaffa cakes go hard, ergo, they are cakes.
I thought the Govt were passing all VAT liability onto the client, who have to declare to HMRC any works that they have done
In Norway, the «vat limit» is 4300 gbp. 85 000 sounds wild to me.
VAT was actually imposed on the UK, as a precondition of EU membership in 1973 (since then, 5.5% went to Brussels and 14.5% went to HMRC) the UK used to have Purchase Tax.
dead right
Spot on!
Great rant mate!
As a young boy VAT was explained to me as paying for the common market administration costs. The common market no longer exists replaced by the EEC and then the EU so why are we still paying it
Hey Roger could you please do a video on your thoughts on Infra Red panel radiators? There's almost no independent information on them online but it seems that many are turning to them for home heating.
Will do
Should get paid for the cost and liability of collecting the tax. You are financially liable for the collection, but you do the work of collecting for free!
its an expense which you can set against tax.
We had a tax inspector visit us a few years back and he got a cab to our factory from the station. All went well and I gave him a lift back there in our truck so he wouldn’t miss his train. We then received a letter saying we were using the truck for personal use. He did back down when I phoned him and called him a few names.
Conveying a tax inspector to a station is a business journey, and he would have known that. If he accused you of using the vehicle for business purposes, it was likely for some other reason. You calling him names would have had no effect on his decision to drop the matter. Don't big yourself up so.
@@jdb47games
More importantly did the inspector pay tax on the value of the free journey he got? Or did he claim the value of the journey as a business expense?
@@shaunhw There would be no tax on the value of a business journey. He would be required to include a receipt for the return journey if he claimed to have used a taxi. There is no reason to suppose he was bent.
After each advert (and there are many) the video does not resume. I have to press the browsers back button and then the forward button and then scroll to where it last stopped because of an advert. It does not make any difference if I let the advert play all the way or click the skip advert button.
I am sorry to hear that. The glitches are with Google ads and we can only run or disable them at our end.
In Ireland its 37500 on Labour at 13.5 and 75000 on goods at 23 percent.. it's a crippler for me clients go mad when you add on 23 percent because the goods are more than 2/3
That sounds like a right pain in the arse. Laws made by accountants to benefit accountants.
I'm self employed but not VAT registered (sadly not got that problem yet). My general rule is add the 20% to the bill, your bigger competitors are charging it so you might as well too. My business is entirely digital and fully traceable so it's not even worth getting involved in cash.
I'll be honest I don't think vat is one of the most complex taxes. When I was 13 I used to do the books for a restaurant and the vat was not the hardest element, by far. I think they should further complicate it tbh, 15% vat in shops, 25% online, good for jobs
What about the news of prices going up. Got told the other day someones goes to their supplier and use to get plastic pipe run for £3 roughly but now its £10. And the oddness of having on the counter at the merchants a sign warning that the price will be 15% more than listed when your order arrives
yep everything is going up and inflation and interest rate rises will follow and people will lose their houses. All this is very, very likely. We won't get out of this intact.
Have to pick you up on something you said towards the beginning Roger, ‘Bill is a bit more honest as he puts all his materials and labour through’, I keep below the vat tax threshold by getting customers on bigger jobs to buy the materials, there’s nothing dodgy or dishonest about that, I just charge them labour.
I thought I said "more straighforward, more honest" simply because Joe is deliberately avoiding having to charge VAT by keeping his turnover down. There is no other reason that he is doing that apart from depriving the treasury.
Skill Builder nope, it’s the customers choice and totally legal if they want to buy their own materials.
It’s also a tradesman’s choice and totally legal if they want to stay unregistered for vat.
Brill thanks I have a question I’m thinking of buying a pub it’s owned at moment private Ltd company and it’s 420 plus tax on 90% of it’s value how much will that be I worked it out to 453k and how do I get this back I was told I can claim it back but at the present moment I’m not vat registered my head is in a spin
I remember the crash of 2007/2008 when tax was put up to 20% from 17.5% . Government said it will be only for a year to " get us outa the shit " . 12 years later still 20% .
Alistair Darling reduced VAT from 17.5 % to 15% temporarily due to the credit crunch and returned it to 17.5 % prior to the 2010 General Election . George Osbourne increased it to 20% in the first coalition budget .
@@petermcsheffrey3954 thanks for clarifying that for me. I knew it was something like that .
If you can't run the country on 20%VAT, something is very wrong.
keep 'em coming ..He is a sage.
jaffa cakes are cakes because cakes go hard if they are left out
whereas biscuits go soft when left out
as for clothing, the cut off age is 14, so if you buy them for a 14 year old you pay vat and 13 you pay not vat
but i love these rants roger, because you explain things so imply and remove the complications
thanks
But check the rules for children's clothes containing fur or leather; pages of it specifying percentages and specific breeds of animal that can affect the VAT rate.
Also the rules for gingerbread men; some committee spent ages on specific detail as to whether chocolate eyes and buttons make it a cake or biscuit.
So Roger, what would you do to change the system and make it fairer do you think it should just be scrapped and the money found from another tax? Assuming that we must allow a period of time to pass even though we are now out of the EU before we can make these changes!
I would keep VAT but I would make all businesses charge it no matter what the turnover is. The situation right now is crazy.
I know a builder who has just built his own house, owns another three houses, drives a Porche, employs illegal immigrants, pays his workers cash and takes cash from his customers and is not vat registered.
That is not uncommon in the industry
What a mess! Brilliantly explained.
Great as always Roger, maybe you should be a politician or a representative for the working class.
I want to learn more, really interested In this as it's information I need
There are plenty of more serious videos out there on VAT, this is just a bit of a light-hearted look at it.
Excellent explanation. It's certainly one of the daftest taxes. The only time it's not so bad is when buy new equipment and don't have to pay the same price as the average joe.
Any good tips to avoid paying VAT on turnover?
Part 2 will need to be on 5% VAT, probably should have been part 1 because it covers heating controls! Amongst other things.... Where doses your heating controls begin and end? Time clock? Room stat? Zone valves? Other materials and labour to actually impliment an S or Y plan? And this is before you get to renewables and the 60% rule..!
Nothing more annoying when you see a good price then hidden in small print there's +VAT. Just put the bloody full price.
Best rant ever - Johnny Vegas would be proud.
I used to work in the British manufacturing industry (does anyone remember that?). The one aim then, when manufacturing goods, was to alway look hard to see if any task can be simplified, so as to reducing the costs. With applied ingenuity the consumer would pay less for the product and the manufacturer would make a better profit. This simplification approach was, and still is present in mass production. Sadly the word simplification does not exist in the lexicon of any taxman. All the saving derived by industrial ingenuity have been squandered on a ludicrously complicated tax called VAT.
brilliant rant
your best video yet, why done the government make building trade 5% vat across every trade surely thats a level playing field
Good suggestion
Love it! Carry on ranting!
No thoughts on the pink tax?
That was brilliant. Took the weight off my chest.
Great rant as usual🤣
It's baffling that new houses are VAT exempt yet any other work is charged at 20% (5% for historic/abandoned buildings). I'm in the current position of advising my client to knock down their house and start again, because they'll get more for the same amount of money - it'll be quicker, easier, warmer etc.
Dead right, a knock down is often the way
@@SkillBuilder it's not only environmentally unsound but often destroys lovely heritage to destroy and rebuild. Rather than blame EU for VAT which pretty much every country in the world charges one way or another, please rant about people building shit new homes at zero vat while restoring /expanding /changing an existing house costs full vat!
@@markusmoll6337 I agree with your sentiment, but I can assure you - I won't be designing a shit new build. 😉
Roger, erm.. only on Monday 9 March, 2015 did we repay the outstanding £1.9 billion war loans we took out in 1917. Our £21 billion WW2 loans were paid off earlier when we made our final £45.5 million repayment of the debt we incurred. It’s financially expensive stuff this fighting for Europe’s freedom. I’m glad they appreciated our financial contribution. I’m also sure my three relatives who are buried in northern France and Belgium would be so happy to hear how much their lives were worth.
Trevor, that is an astute comment. I had no idea it took that long. War is not cheap but lives are, it seems.
Dinner Dinner Dinner Dinner Dinner Dinner Dinner Dinner...VAT man!
Try explaining Reverse VAT!!!!
Interesting Roger
Even if the government reduced VAT to 10%, manufacturers would bump up prices by 10% to fill the void.
No they wouldn't because the nature of the free market keeps that under control. One manufacturer bumps up prices by 10%, another will keep it the same and have a price advantage forcing the other to lower to match.
@@CraveThatCoin Stamp duty reduction caused a hike in house prices. Crude oil prices dropped through the floor, petrol prices never did. It happens every time.
When one manufacturer introduces a price increase, they all follow suit within days. THAT is the free market.
@@markrainford1219 stamp duty has nothing to do with the free market nor does petrol. Because stamp duty is a government tax from 1 source. There is no competition. Petrol is also heavily taxed to the point of very little difference in price between different companies but there is still a variation in price and that is the free market.
Private businesses with normal competition is where you see the true free market. For example look at the quality vs cost of broadband over the last 10 years. Relative to speed it is very cheap.
😂👍 That was a piece of Art
This is why people should only have sales tax at the final point of sale.
Visitors to the US complain about paying sales tax on each transaction, but what they do not realize is how much tax they are paying on each product in their home country that charges VAT because it is included in the price.
US transactions cannot include sales tax in the final product because States have their own sales tax, counties have an additional tax, and some cities have an additional sales tax.
There is also additional taxes on specific products like alcohol, sporting events, hotels, etc.
VAT is only paid by the end user, everyone else in the supply chain simply claims the VAT back. Every receipt always shows the amount of VAT paid.
Visitors do not complain about "paying sales tax on each transaction" in the US; they complain about the failure of US stores to label the product with the full price.
The consumer does not care what a tax is called be it VAT or sales tax. If 20% of the ultimate price is VAT or sales Tax does not change what the customer pays.
@@johnclements6614 movie and some concert tickets include the sales tax in the cost in the price.
Fuel also includes the tax in the price.
Many states make it illegal to include the sales tax in the listed price.
Sales tax is not the same throughout an entire state. Counties have their own sales tax and some cities have an additional sales tax.
Ultimately it is on the consumer to pay the sales tax if not paid at the time of sale.
@@matthewhammond9575 US states are free to make laws about how prices are displayed. If they choose to have laws that force stores not to display the full cost it is not unexpected that visitors will feel that they are being scammed.
I am not sure what varying tax rates from city to city has to do with anything. Different branches of the same store in the same town sell the same products for different prices. All you have to do is program the till/checkout with the price and label the shelf with the product price to match. There is no reason why you could not have a different tax rate for each store as well as different prices excluding tax.
Here in the UK we get the total tax plus each item that is taxed marked on most till receipts. The price on the shelves (etc) that hold the products normally include VAT (trade centered builders merchants display prices ex VAT) but there is no reason not to display both.
I no longer use Cafe Nero, VAT rates were reduced after lockdown period (5%) yet prices in Cafe Nero remained at the 20%VAT rate. Nero applied for every grant, rebate or loan available and the parent company is based off-shore. Foolishly I was a regular customer for years, haven’t been inside a cafe Nero for more than 2 years. Nero are not alone, I used an Austrian themed cafe in Islington, highly underwhelmed by the Kaffe und Kuchen, coffee and cake, (sachertorte) and overwhelmed by the £11.50 (VAT 5%) bill for mediocre coffee and cake. M&S Cafe less than half price, better quality.
Americans have a much more complicated system called sales tax which varies depending on the state, the item category, the locality, and since January the putative genders of the buyer and the seller.
Yes but Americans have massive brains so they can work it out. Us British need simple stuff
Wonder if anyone ever got it cheaper because the builder wasn't VAT registered.
7:28 To be accurate, the dispute was not about whether a Jaffa cake is a cake or a biscuit, but whether it was a cake or a CHOCOLATE biscuit. A biscuit with no chocolate, or one containing only bits of chocolate, such as a Maryland cookie, is zero rated, but one partially or wholly COVERED in chocolate is standard rated. A cake is always zero rated, even if covered in chocolate.
What about reverse vat. Cis subcontractor payment in ltd company. That would help all the subbies on here
VAT rules can get truly arcane Biscuits - No VAT is charged if the figure has two chocolate spots for its eyes, but any other chocolate-based additions, such as buttons or a belt, mean VAT is payable.
The sale of a horse is standard rated. However, the sale of a dead one (for horse meat) is zero rated
Food for wild birds is zero rated while food for caged birds is at 20%.
Food that is too hot to eat can be classed as cold food for VAT purposes.
The sales of kangaroos are standard-rated but kangaroo steaks are zero-rated.
Rabbits are zero-rated, even if sold as pets. Sales of pets are standard rated.
The sales of counterfeit (illegal) goods are subject to 20% VAT, but the sale of counterfeit banknotes are not.
Tuition provided by a sole practitioner is exempt, but if the tutor incorporates then they become standard-rated.
In the Spearmint Rhino case it was ruled that there is no VAT on lap dances.
Dog food for a poodle is subject to VAT but exactly the same food can be zero rated if it is for a Labrador (if a working dog).
Doritos are zero VAT rated, because they’re primarily corn-based. Pringles are VAT-able: HMRC and Proctor & Gamble went to court over this VAT dispute back in 2008. The court of appeal ruled in favour of HMRC, and confirmed that Pringles were in fact a potato snack - even though they contain less than 50% potato. Other well-known VAT exempt snacks include Skips, Twiglets and Bugles, because they’re all maize- and corn-based rather than made from the humble potato.
when are you going to do a video on the wonderful simple construction industry scheme.....
From you explaining that every step has to add VAT, it seems like an obvious solution to stopping people creating "middle man" businesses where all they do is resell stuff and create no value. So it's a good thing
I oversee manufacturing of gym equipment. So I pay GST on the steel. Then I pay GST to the fabricator. Then I pay GST to the sand blaster and powder coater and then I have to pass all of that to the customer with my own GST when I sell. There's no where in the west that can do all the components of manufacturing in and I want to keep the manufacturing local.
If they create no value then people will eventually not buy from them. Value is percieved anyway, trying to quantify it seems ridiculous to me. Is this some huge problem that I'm unaware of? You'd rather pay more taxes
You could apply that logic to every retail shop and supermarket etc. in the country as that's all they do isn't it?
Never mind VAT, try CIS. I file zero and select the 6 month option, hapy days. I am winding down but just in case I need a hand I stay registered, not even sure I can actually unregister. I can't see anywhere on my account where it confirms my 6 month selection? I am never quite sure where the 6 months started and can see when it expires! So I usually get a full trees worth of paper through the post fining me (making tax digital??!) I appeal online and get another tree telling me, well I think it says I don't have to pay the fine, pages of information but clear it ain't. Last month I got fined again but it was only the month before that I selected 6 months, though I still don't get told from when to when. I have taken to taking screen dumps of everything now because its so chaotic.
Entertaining clever guy you are Rodge.
More like a nutcase than a clever bloke.
When the masks are different colours, depending on if VAT was claimed for or not, you know we're in trouble 🤔
I heard about Germany TAX'ing people more than most countries, surely they up the salary to compensate or something?
Great summary Roger 👍
Thanks Chris
What about high excise taxes in UK , the truck delivering food & products pay high fuel prices because of high excise on fuel
why charge it on turn over and not profit? 1 extension built goes over the threshold but money in the builders pocket is minimal, makes no sense
With regards to the start of this video where non VAT Joe is cheaper.
In 2008 I used a non VAT registered electrician. At the time I had no idea what that meant, I just needed an electrician for my new house.
I had problems getting quotes from two others and Bumbling Barry was the only one who quoted so went with him as i was eager to move in.
Bumbling Barry Williams an untidy fellow, as well as all the debris he created, left receipts for the light switches and sockets and sundries behind. I was shocked to see he was buying them from a small electrical shop, at twice the price of screwfix! I learned a valuable lesson. To persist and find several quotes. Never used that clown again. On day 2 of the job, Barry locked himself out of my house, even though I'd warned him how the yale lock works. And had to drive 30miles from work to let him in. I really hope he isn't trading anymore.
These get better and better.....but....er....does this mean im getting old!
If you want, you can go on the 11% scheme. Joe could charge 20% but only pay the government 11%. It pays to go vat registered for lots of workers. I used to do my vat return in about ten minutes.
Shared on Twitter
Bill will be charging materials at a “pre vat” price. So Joe will be charging say 100 pounds as he’s had to pay VAT but Bill will be charging 83.33 plus vat as he’s offsetting his VAT
This!!! Don't think many Builders think about this and charge a VAT inclusive price PLUS VAT. Should be even for all.
@@turboguy86 if then said client is happy paying over the odds then that’s up to them. No? As a VAT registered company we’re like any other company VAT registered or not and are competing with others. So its pointless charging inclusive VAT to add VAT. Unless you drop your profit margins and the VAT margin is your profit margin mark up. And that’s probably really what price differences are. Yet that then leads not just to VAT issues but also other tax issues a company has. It is even for all. Just like not all clients want to pay the cheapest quote. Not all contractors will charge the same no matter the tax system.
lol . that PIE PANTO killed me ... im on the floor .)))