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VAT registration on self-employed

Self-employed taxi driver with export business

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Hi 

My client is a self-employed  UBER taxi driver. He recently started an export business as a sole trader and registered for VAT to claim VAT on UK  purchases. Should he pay VAT on  UBER commission he receives as well?

Appreciate any thoughts on this.

 

Replies (10)

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Scalloway Castle
By scalloway
01st Dec 2021 08:05

If an individual registers for VAT then they must account for VAT on all business activity.

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Replying to scalloway:
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By rmillaree
01st Dec 2021 08:26

I think that reponse MAY be slightly misleading scalloway - see my separate post for further details.

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By rmillaree
01st Dec 2021 08:35

If you don't understand this area of vat in detail i would recommend requesting client seek suitable specific specialist advise. The danger here is that if you don't know the score you really should not be assisting client.

If there is any indication that business customers of your clients are not based in the uk then great care should be taken. Place of supply of services notice 741A will have the answer which will depend fully upon how Uber confirm their place of belonging for vat and also will depend on the details of the services provided - even then you might find that the way Uber see it is not the way hmrc see it.

Personally i fail to see how Uber cannot be classed as a uk based transportation company for vat purposes - however my thougthts as to the rights and wrongs of this situation probably matter didly squat - other than it is a disgrace that uk authorities allow Uber to do what they have done historically - perfect situation where hmrc should have changed the rules to allow uber to have a direct tax advantage over legitimate operators who charge vat.

Note my comments may be out of date IF Uber are now in the fold and charging uk vat under uk vat number.

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chips_at_mattersey
By Les Howard
01st Dec 2021 08:39

How is the Uber commission described? And, does Uber have a UK vat number? The supply may be subject to the Reverse Charge and therefore outside the scope of UK vat.

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By ArianBloodwood
03rd Dec 2021 11:54

Wouldn't the export business be a separate trade from the Uber driving, and as such its VAT registration would not impinge upon the Uber trade?

Unless somehow the OP is exporting their Uber-driving service as well..?

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Replying to ArianBloodwood:
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By Wanderer
03rd Dec 2021 12:11

ArianBloodwood wrote:

Wouldn't the export business be a separate trade from the Uber driving, and as such its VAT registration would not impinge upon the Uber trade?

Seriously?
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Replying to Wanderer:
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By Leywood
03rd Dec 2021 13:57

Coffee on PC screen moment

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Replying to ArianBloodwood:
RLI
By lionofludesch
03rd Dec 2021 12:55

ArianBloodwood wrote:

Wouldn't the export business be a separate trade from the Uber driving, and as such its VAT registration would not impinge upon the Uber trade?

Unless somehow the OP is exporting their Uber-driving service as well..?

Only snag with that would be this silly rule HMRC have that a person's VAT registration covers all his businesses.

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By hasa
03rd Dec 2021 18:41

Thanks for the guidance. I was informed by tax advisers all activities will be subject to VAT which is coming under self-employed individuals.

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Replying to hasa:
RLI
By lionofludesch
03rd Dec 2021 18:57

hasa wrote:

Thanks for the guidance. I was informed by tax advisers all activities will be subject to VAT which is coming under self-employed individuals.

It's nice that you're checking this with tax advisers but this is basic stuff. Might be cheaper to just go on some update courses. They're so cheap online these days that there's no excuse for not keeping up to date.

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