Member Since: 16th May 2008
12th Nov 2021
You mention that this is a "potential" client. Have you considered whether the client actually knows what has happened and is trying to "pull a fast one" by changing accountants so that the money can be released?
Sorry to be so cynical but I think you should be very wary about taking this on!
20th Aug 2019
Client's turnover (a mix of zero and standard sales) reaches £86000. Therefore they are vat registered. The standard sales are not increased by 20%, the customers are "people in the street". Therefore the £86000 is vat inclusive and borne by the client. When you deduct the output vat, taxable sales are below £85000. So the client has to be vat registered but do they have to register for MTD?
20th Aug 2019
Yes Basil, the total has not been split between zero and standard sales.
It was easier to just assume vat at 20% on all sales merely to try and get my point across ie the total gross sales are over the vat threshold but when you deduct the vat the taxable sales are below the threshold. Hence the question, do they still have to register for MTD!
19th Aug 2019
From the details provided, it appears that where the client is VAT registered he is going to effectively absorb the VAT cost himself by not passing the 20% on to the customer (presumably where his customers are not VAT registered to recover it). Is this the intention?
It's a very small business with a mix of Zero & Standard rated sales. The customers are not vat registered, so yes, the standard sales cannot be increased by 20%
19th Aug 2019
Thanks for the clarity!
Unfortunately he can't deregister - he has a mix of Zero and Standard sales which means he will always be above the vat registration threshold but supplies excluding vat are always below £85000!
16th Mar 2018
"Vote the bas****s out"
Unfortunately there are NO politicians of ANY party that actually give a damn about small businesses that are simply making a half decent living.
So, who to vote for???????
29th Mar 2017
We are leaving the EU for the best possible reason - the democratic right to elect or remove who we choose to be in charge of us and not be controlled by a corrupt cabal of nameless individuals who haven't even managed to have their own accounts signed of by the appointed auditors. And, considering that the accounts of many multi-national firms have been signed off in the past and have later been found wanting - it makes you wonder just how bad/corrupt the EU actually is! That is of course if you actually bother thinking for yourself!
3rd Mar 2017
I received one today and rang the Revenue to ask which client(s) because as far as I am aware none of my current clients would be using tax avoidance schemes.
I was informed that it could be a generic letter and if any client was being investigated they, and I, would receive a letter detailing the investigation!
3rd Oct 2014
Rate of Pay
"Fairness" in the amount of tax you pay and "fairness" in the rate of pay you earn are two separate topics (imho).
My example was in relation to tax.
However I do think that there could be agreed "fair rates of pay" for certain jobs/occupations, and especially if they are paid out of the public purse.
For example, I don't understand how some people at the BBC/managers in the NHS/council leaders etc can be considered to have a more demanding, difficult job and be paid significantly more than the Prime Minister of the country! I know this is debatable, but surely the PM, as the highest ranking public servant, should be on the highest rate of pay?
The main problem with this idea I think is how do you encourage those at the lower end of the pay scale to do a good job if you get paid a set rate for a particular job irrespective of how well you perform in that job?
In public owned companies, I do think there is a huge discrepancy in the salaries of the highest paid (bankers for example) compared to those of the lowest. I would consider having some sort of set salary differential whereby the highest paid person cannot be paid more than say 25 times the lowest paid person in the organisation. (The multiplier is not cast in iron!!).
There is a lot more to think about when trying to determine what is a "fair rate of pay"
3rd Oct 2014
Now we appear to have come full circle! Is it actually possible for anyone to come up with a definitive version of what is "fair" ?
Let's say this person worked damned hard, had spent a few years living near the breadline whilst working 70 hours + every week to establish their business making "new widgets".
Finally, it takes off and in say the fifth year of trade, this person earns a taxable income of £1Million (after personal allowances)!
Are you saying it is "fair" to penalise this person by forcing them to pay a much higher rate of tax than "Joe Bloggs" across town who has been more than happy working his 9-5 37.5 hr week for the last few years and earning an average wage somewhere between £24 - £30k per year?
I think "envy" is the enemy of "fair"!