We have a client who runs a taxi operation. They own the cars and pay for all running costs.
They pay the drivers a share of the takings.
Say, the driver earns £1000 a week. They would say give the driver £400 and keep £600.
Now, as the drivers are not VAT registered they are taking that £600 and applying 20% VAT to it and paying the £120 over to the treasury.
Is this right or should the money be treated as received gross and then they should divide it by 6.
If it's 20% then it seems to be they are being unfairly penalised as they've never received the VAT.
- On line Remote Training 209 7
- Are agent account managers any good? 54 1
- Clients 566 11
- Intermediaries reporting - who does it apply to? 47 1
- Starting new accounting business 121 2
- Group Relief 50 1
- Practice Company Secretarial Software recommendations please 215 3
- Sage 200 vatable journal? 93 4
- Transfer of stock 240 12
- Can a Directors Pension be paid into a Ltd Company 119 1
- New client procedure 270 4
- Managing deliberate defaulters hmrc 233 2
- Does SMP and SPP go up if leave goes across 2 tax years? 304 10
- Tolley UK sales number 155 4
- Enterprise relief 102 2
- Pre-registration VAT: can you reclaim VATon delivery costs incurred in the six months prior to registration? 165 4
- VAT flat rate scheme 394 7
- Virtually Impossible 597 12
- Registering as a director 112 1
- SSP days and Holidays 210 3
- QROP pension input amounts 488
- HMRC BENCHMARK EXPENSES 465
- write off loan or loan to equity swap or both 431
- EPS and CIS deductions 288
- Sole trade business in UK, but the owner works from EU 278
- Construction CIS LLP Company 271
- Stamp duty on house transfer between spouses 233
- SAGE winforecast 194
- LIVE: Budget aftermath webinar 177
- Overdrawn director account 163