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.
- Associated disposals - Entrepreneur's relief 163 3
- Where has Portia gone? 2,048 67
- unmarried couple, two houses, one rental - CGT? 124 7
- Are Sales to Germany considered VAT Taxable turnover for HMRC? 190 5
- recompense capital input 55 1
- New Client wants an Income Certificate for a Mortgage 950 22
- Do I have grounds to dispute our accountant’s fees? 556 14
- What shall I reduce payments on account to? 129 3
- Deferred Tax Asset & Liability 371 9
- transferring from franchisee to ltd comapny 225 5
- Merging my businesses 207 3
- Spousal transfer and PPR 570 19
- Is it worth being a limited company if already a higher rate taxpayer? 462 8
- Is my client risking reputational damage? 344 9
- Sage Vat return box 2 329 1
- Holiday entitlement 583 11
- Performance measurement within accounting practice 324 7
- Capital allowances on taxis 154 1
- Can i reclaim tax if my fuel cost more than the AFR in a company car 234 3
- Sage line 50 payment before invoice date 212 11
- Services via intermediaries and new HMRC reporting requirements 791
- RTI - duplicate employee record 558
- Pensions Regulator 450
- How hard is it to reduce a code? 410
- Portia ... Where art thou 314
- Sanzar 313
- Digital marketing focus group 297
- How do you do it 295
- Kashflow balance sheet difference 271
- new investor structure 179