VAT

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FreeD

Private Member
Watch the VAT lads...with this rampant inflation many of us will be pushed into it.

There hasn't been an increase in the threshold since 2018.
 

Smudger1

Well-Known Member
They've robbed enough off us in tax n vat in fuel etc so it should go down not up !
But they need it for foreign aid and Ukraine and fiddles etc so prob going up !
 

themucky1

Well-Known Member
Personally I think MTD is just an easier way of spotting discrepancies in peoples accounts just by logging into their submissions, then if there’s enough to go on pull you in and hand you a nice “penalty”
This way hmrc are saving a lot of man hours investigating just by an agent logging into your accounts.
 

Brimstone

Well-Known Member
Personally I think MTD is just an easier way of spotting discrepancies in peoples accounts just by logging into their submissions, then if there’s enough to go on pull you in and hand you a nice “penalty”
This way hmrc are saving a lot of man hours investigating just by an agent logging into your accounts.
Correct, not even an agent, automatic discrepancy filter. letter in the post/email in your HMRC mailbox "would you like to make a declaral".
 

FreeD

Private Member
They've robbed enough off us in tax n vat in fuel etc so it should go down not up !
But they need it for foreign aid and Ukraine and fiddles etc so prob going up !

Don't think you understand the post...many trades will have been trading just under the 85000 threshold last few years...but with rampant inflation...materials & labour your turnover will increase...many will be pushed into it and have no choice if they want to earn an average wage say 60K.

The 85000 VAT threshold has not been increased since 2018!!! and no plans to review until 2024!!!! That is a massive pay cut for those who don't want to register and be lumbered with all that VAT registration brings.

The government is now consulting on reducing the threshold, it is lower in many other European countries...but aT this rate of inflation they won't need to bother lowering it as we will all be pushed into charging it by inflation!!!
 

Smudger1

Well-Known Member
Don't think you understand the post...many trades will have been trading just under the 85000 threshold last few years...but with rampant inflation...materials & labour your turnover will increase...many will be pushed into it and have no choice if they want to earn an average wage say 60K.

The 85000 VAT threshold has not been increased since 2018!!! and no plans to review until 2024!!!! That is a massive pay cut for those who don't want to register and be lumbered with all that VAT registration brings.

The government is now consulting on reducing the threshold, it is lower in many other European countries...but aT this rate of inflation they won't need to bother lowering it as we will all be pushed into charging it by inflation!!!
Yes I get many will find it unavoidable breaking the 85k threshold and reluctantly have to register due to inflation. I meant the 20% vat rate is high and should be lowered back to 15% or lower to help everyone. But government won't will they ?
 

FreeD

Private Member
Yes I get many will find it unavoidable breaking the 85k threshold and reluctantly have to register due to inflation. I meant the 20% vat rate is high and should be lowered back to 15% or lower to help everyone. But government won't will they ?

No they won't do anything. They have already admitted publicly 'they can't help everyone' which probably means 99% will become slaves.
 

spread95

Well-Known Member
Don't think you understand the post...many trades will have been trading just under the 85000 threshold last few years...but with rampant inflation...materials & labour your turnover will increase...many will be pushed into it and have no choice if they want to earn an average wage say 60K.

The 85000 VAT threshold has not been increased since 2018!!! and no plans to review until 2024!!!! That is a massive pay cut for those who don't want to register and be lumbered with all that VAT registration brings.

The government is now consulting on reducing the threshold, it is lower in many other European countries...but aT this rate of inflation they won't need to bother lowering it as we will all be pushed into charging it by inflation!!!
Think I'll move round your way if the average wage is £60k!
 

Brimstone

Well-Known Member
Bit like the old offside rule where the back line creeps forward to catch the striker out.

I hear tell of creating a second company that buys all the materials and invoices the client but does'nt do the work. The labour only company does that and invoices the client. ??
 

themucky1

Well-Known Member
Bit like the old offside rule where the back line creeps forward to catch the striker out.

I hear tell of creating a second company that buys all the materials and invoices the client but does'nt do the work. The labour only company does that and invoices the client. ??
Wouldn’t this result in twice as much in accountancy fees as they’re accounting for two companies?
 

Brimstone

Well-Known Member
Wouldn’t this result in twice as much in accountancy fees as they’re accounting for two companies?
A) If you use an accountant b) You negotiate fees and haggle. Don't just accept "oh its a second company" bull - there's no payroll and almost nought to do on one, unless you are asking them to do non-accountancy things like sening out invoices - bookkeepers charge by the hour and are much cheaper.
Couple of hours a week with a bookkeeper keeps all the records straight and a breeze for the acountant to do the return on the automated software mandated by HMRC.
 
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