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Client being "enticed" into VAT registration...

a marketing ploy by another accountant - see what you think.

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A client rang me yesterday to say that he was going to work temporarily as a van driver and had been told that he should become VAT registered.

He was sent a video (the link is below) which is along the same lines as Quick Books in ..." its all easy with us" etc etc. His usual income is as a judo instructor and as he hasnt been able to work for a very long time due to covid closure of sports halls he is getting rather desperate for any work.

But he's only going to work for them for a few weeks. He hadnt appreciated that once he was VAT registered he couldnt unregister immediately he left, wasnt told that he had to leave me and so on. He thought they would do the work just for the time he was with the firm.

...quote from video...'all this for only £15 a week.'

The link was headed 'Driver registration Wise' as if it was something he had to do (or it was 'wise' to do?)

See what you think

https://securitax.force.com/drivers/SecuritaxCommunityPage?Id=a2Z1v00000...

Replies (17)

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By ireallyshouldknowthisbut
26th Feb 2021 10:07

Those fake self employed drivers are really bad news for your client.

He is no doubt desperate to work, but the risks are considerable and the costs high.

Its all "per week" cost so £100 for the van, another £100 for the insurance. Or in real money £10k a year. They get fleeced something rotten and end up earning less than minimum wage.

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By Duggimon
26th Feb 2021 10:12

I think I would just point out that entrusting your livelihood to someone selling you things via a cartoon is a bad idea.

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Replying to Duggimon:
paddle steamer
By DJKL
26th Feb 2021 10:50

That surely has to depend upon which cartoon, I am a sucker for original Tom & Jerry and some of the pre digital Disney (Mickey's Christmas etc)

People might not know that Donald Duck, Kalle Anka, is incredibly well know in Sweden, they have a custom of watching him in Christmas cartoons on the 24th December.

https://www.thevintagenews.com/2016/12/17/swedens-odd-tradition-of-watch...

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Replying to DJKL:
By Duggimon
26th Feb 2021 12:32

Nice, we may have to institute this, our Christmases seem to become more Swedish each year, the wee one has an advent Tomte and our Christmas morning snacks are always Lussekatter, perhaps Kalle Anke has to find its way into the rotation now as well!

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Replying to Duggimon:
paddle steamer
By DJKL
26th Feb 2021 13:09

Well remember to have your meal on the 24th and then you get your pressies that evening.

In the 16 years we have had our house there we have only had one Christmas over there, it was tricky with parents etc to not be here with them , it was very pleasant, from cutting down our tree from out back and also decorating one of the garden trees, sitting in front of the open fire supping glogg etc, a walk down to the frozen lakes then hot chocolate and marshmallows. Before Brexit I had envisaged in retirement spending Christmas and New Year there every year, that is now not to be, when we do get back there it will be for the sad business of packing the personal stuff into the car to bring it home and then selling the house.

My kids at least found a company in London who sell Swedish food so we have had a box of it sitting since Christmas waiting for when my son got back from the US(landed last weekend) and out of his self imposed quarantine (should be next week), at which point all the Swedish biscuits, crisps etc will be fair game.

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RLI
By lionofludesch
26th Feb 2021 10:47

As I see it, they're promoting the advantages of doing the invoicing and submitting returns for you. Which is, to be fair, a definite advantage.

The down side will be - are the returns correct ? And we had a fella on here not so long ago saying that they weren't.

So what they seem to be offering is a cheap, low quality service.

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the sea otter
By memyself-eye
26th Feb 2021 11:41

As a judo instructor he should give this idea the chop.

Oh err - that's karate......

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Replying to memyself-eye:
A Putey FACA
By Arthur Putey
26th Feb 2021 12:23

Suggest you put this on hold ...

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Replying to memyself-eye:
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By Dib
26th Feb 2021 13:18

Sounds like he was thrown by the video

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Replying to memyself-eye:
Lone Wolf
By Lone_Wolf
26th Feb 2021 16:42

You've got me rolling around on the floor with that joke.

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Replying to Lone_Wolf:
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By johnjenkins
02nd Mar 2021 12:09

How so.

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Jason Croke
By Jason Croke
26th Feb 2021 12:10

The VAT registration would presumably be voluntary unless he is hitting £85k of taxable turnover. If a sole trader the martial arts income would be exempt anyway or if a Ltd the martial arts income will have dropped considerably in last 12 months due to no actual sales.

So he could register for a few weeks and then deregister if turnover is below the £83k deregistration threshold, but seems a lot of hassle for a few weeks and more so as the reopening of sports activities is around the corner.

The advert is clearly, as you say, like the QuickBooks advert making out how simple everything is, but one click purchases aren't the same as reeving bespoke advice to see what best suits your situation.

On saying that Amazon work with VAT specialists Avalara and charge something like £300 per year to register an Amazon trader for say French VAT and submit French returns, its all digital and geared up for high volume low margin and I guess this offer for van drivers is aimed at a very specific audience but as we know, one size does not fit all.

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Replying to Jason Croke:
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By djn
02nd Mar 2021 10:26

Jason Croke wrote:

If a sole trader the martial arts income would be exempt anyway or if a Ltd the martial arts income will have dropped considerably in last 12 months due to no actual sales.

Are you sure that this is correct? I thought I read that it has been clarified by hmrc running a martial arts school is not exempt.

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A Putey FACA
By Arthur Putey
26th Feb 2021 12:28

An aside, but what happens with a delivery driver who happened to be VAT registered and was deemed a worker like the Ubers? Would he be a worker, self employed but entitled to min wage, and if he was paid through PAYE would be still need to declare it as a supply for VAT purposes?

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By paulwakefield1
26th Feb 2021 12:39

Securitax seems to have cropped up a few times in recent months on these pages.

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By Hugh Simpson
26th Feb 2021 20:57

Does unregister=deregister or does
unVAT=deVAT.

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