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View the thread, titled "Self employed and finding my groove?" which is posted in Gas Engineers Forum on UK Plumbers Forums.
M
Murdoch
that sounds dodgy too!
A relatively recent regulation called 'IR35' has pretty much killed off such schemes for income tax and national insurance avoidance:
Not sure about whether splitting into two companies in order to stay below the VAT threshold works but I think it's unlikely.
IMO everyone who turns over more than £20k should be VAT registered. It should be a level playing field for everyone.
And trying to avoid being VAT registered, tbh it'll just cause you more headaches in the long run and you'll always be hitting that ceiling.
Customers don't want hassle, they want you to supply and fit and bill in one go.
And trying to avoid being VAT registered, tbh it'll just cause you more headaches in the long run and you'll always be hitting that ceiling.
Customers don't want hassle, they want you to supply and fit and bill in one go.
M
Murdoch
wow - that would drive tax evasion up massively
I think that the VAT threshold should be higher for 1 man bands and higher again if the person has an apprentice
Being a spark its very easy for me to keep well below the VAT threshold - but guys fitting boilers are in a different ballpark all together - that said I can across a start up GSR a couple of years ago with an employee and he was doing lots of work and his USP was he wasn't VAT reg yet! Not sure that was going to end well
Do you not think it would do the opposite?
Think of how many people are evading going VAT registered, by whatever means.
M
Murdoch
many VAT reg people take cash now .....
raising the 20% tax threshold to £50k this year is most likely to increase tax take ...
There's more incentive for someone not VAT registered to do that. If your not VAT registered and you're getting your customer to pay for all the materials and just charging for labour - whilst it is legal you could argue that's a form of evasion too.
Just saying, it should be a level playing field for everyone. If you are turning over any decent money (20/30k+) you should be charging VAT. Why is it fair otherwise?
Just like this but without being VAT registered in first place.
Would mean I can pass the larger parts costs through the buisness, all I need to do is add explanation to terms and conditions of contract and itemise actual cost on invoice as a disinbersment.
Only downside is not being able to mark up parts but I dont mark up boilers anyway.
Basically means I can increase my turnover by £20K+ without going over threshold.
www.gov.uk
Would mean I can pass the larger parts costs through the buisness, all I need to do is add explanation to terms and conditions of contract and itemise actual cost on invoice as a disinbersment.
Only downside is not being able to mark up parts but I dont mark up boilers anyway.
Basically means I can increase my turnover by £20K+ without going over threshold.
VAT: costs or disbursements passed to customers
How to account for VAT if you make supplies to your customers, and you pay certain costs that you pass on when you invoice them.
you can use the kids, parents, grand parents, any number you want. The smart people do this to pay little or no tax as well. For example, a child has the same personal tax allowance as a grand parent. So 2 kids plus wife (if not working) plus parents (if not working) plus grandparents. So £12.750 x 8 so over £100k legally earned without tax having to be paid. If you don't have the people then just create numerous Ltd companies instead, keep them for 3 years then fold them for £10 each. No tax, no VAT no nothing. All perfectly legal. The system has gaping holes to enable the wealthy to avoid tax so they can't close them. They work on your training as good sheeple not to be "unfair" LOL
so you become a retailer and have all of the consumer protection laid at your door...wow, now that is stupid
Hi @hometech
I think you've missed the point on both instances there.
My plan involves avoiding VAT registration and is perfectly moral and fair (in my opinion)
Your talking about income tax avoidance and if not technically illegal it is certainly wrong (atleast to the extent your suggesting).
I'm no sheep for contributing towards the running of my country and the support of my fellow Countyman (altho I don't love the bill), I'm a strong, grown arse, responsible and decent man!
Acting as an agent actually absolves me of any responsibilities for parts as the customer has effectively purchased them themselves...?
I think you've missed the point on both instances there.
My plan involves avoiding VAT registration and is perfectly moral and fair (in my opinion)
Your talking about income tax avoidance and if not technically illegal it is certainly wrong (atleast to the extent your suggesting).
I'm no sheep for contributing towards the running of my country and the support of my fellow Countyman (altho I don't love the bill), I'm a strong, grown arse, responsible and decent man!
Acting as an agent actually absolves me of any responsibilities for parts as the customer has effectively purchased them themselves...?
multiple companies and or individuals names on receipts removes the vat threshold. Simple.
You need legal advice if you think that you are absolved as an "agent". Are Tesco's "agents" for Heinz? Of course not.
You also need to understand the term "good title". Ask a solicitor to explain or perhaps you can use your search engine "passing good title"
You need legal advice if you think that you are absolved as an "agent". Are Tesco's "agents" for Heinz? Of course not.
You also need to understand the term "good title". Ask a solicitor to explain or perhaps you can use your search engine "passing good title"
Not true.
Staying under the VAT threshold with multiple businesses – Green Accountancy
www.greenaccountancy.com
Your supermarket example is not a valid simily as they are buying and reselling for profit.
In my case I am buying expressly on the customers behalf making me an agent, them my principle and supplier a third party, this is a well set out model within the HMRC guidelines. I would suggest you do your research before affirming your naive opinion as fact.
I don't know how you could have multiple names on one invoice but I do know that unless you can prove that disaggregation of a buisness is for a good and valid opperational reason, that the separate buisness' don't have any financial or operational dependence upon eachother and don't share staff or equipment then you are leaving yourself open to prosecution by HMRC for tax avoidance (if they have reason to suspect that is the purpose of the separation).
Now jog on and try spurting your BS at someone that you may have the aptitude to fool 👍
In my case I am buying expressly on the customers behalf making me an agent, them my principle and supplier a third party, this is a well set out model within the HMRC guidelines. I would suggest you do your research before affirming your naive opinion as fact.
I don't know how you could have multiple names on one invoice but I do know that unless you can prove that disaggregation of a buisness is for a good and valid opperational reason, that the separate buisness' don't have any financial or operational dependence upon eachother and don't share staff or equipment then you are leaving yourself open to prosecution by HMRC for tax avoidance (if they have reason to suspect that is the purpose of the separation).
Now jog on and try spurting your BS at someone that you may have the aptitude to fool 👍
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Sorry for being rude but i'll take any chance I get to shoot someone down that advocates blatent fraud while reveling in their triumph over the common man.
Each to their own but if you take pride in that, then we are just very different people (and I'll call it there)!
Each to their own but if you take pride in that, then we are just very different people (and I'll call it there)!
M
Murdoch
so all 8 people are over 16 and have no other income ..... extremely unlikely in this day and age, and grandparents would have pensions too,
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