Attn: Dean

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
Come on Dean - dont keep me in suspense - do you agree with my VAT figures????

Claudia

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean

    Sorry where am I looking again? :oops:

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean



    OK Dean here goes - I think what I am saying is right - I have sort of guessed at some of the figures:

    VAT Registered:

    Commission: £13,000
    VAT from Co: £ 2,275

    Total Income = £15,275

    Purchases: £8,000 (net)
    VAT owing: £ 875 (2,275 - 1,400)

    Net profit = £6,400

    Not VAT Registered:

    Commission: £13,000
    Purchases: £ 9,400

    Net profit = £3,600

    Better off to the tune of £2,800.

    Please someone tell me if I have missed something blindingly obvious

    Claudia
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean

    This is how I take it:

    The sales reps are paid there wage net of VAT?
    This is why when the quarter end comes the firm send a cheque to the rep.. in this case £2,275.

    Forget input tax for a minute....

    So this is the only transaction that happens...

    Why does the firm send him the cheque for £2,275 its Customs money :?

    Are we saying that he sends HIS vat return to the firm and they complete the return and send him the cheque.... all its doing, is it not, is saving him admin....

    The additional cheque that he receives, I would of though he should be forwarding that on to HMRC!

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean

    Yes they are paid net of VAT.

    I fax a copy of his VAT return through and they complete boxes 1 and 6 - if he has any other sales (furniture) I add these on and fuel scale charge.

    Say for example, they send him a cheque for £2,275 I would (this quarter) only add on £35.15 (FSC) to box 1 - then deduct all his inputs. He gets cheque for £2,275 and sends off cheque to Revenue for £2,275 + £35.15 less £1,400 in this example ie £910.15.

    Am I making sense or not :?

    Claudia
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean

    I see, well then.... what ya worried about :lol:

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean

    I wasn't worried :D you thought it was too good to be true :wink:

    Claudia
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean

    I'd still like to know what "proceeeeedure" they went through with the Revenue to assertain his employement status as "self employed."

    I bet he does a 40hrs a week :lol:

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean

    So would I :lol: I suspect that probably stacks of cash into solicitor's pockets with very very well written contracts - or just that the Inspector wanted double glazing :lol::lol:

    Claudia
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean
    claudialowe wrote:
    or just that the Inspector wanted double glazing :lol::lol:

    That sounds about right :D

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean

    I have been through a similar thing of employment or not with a well known slimming club.

    Tools and stock are provided at no charge, lecturers are told where to take their classes, hall rents are paid by the company, lecturers take their money and bank the rest but they are classed as self employed - does that not break every rules we learned about employment and self employment???

    Annette
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean

    My husband used to work for a large firm of insurers - office etc etc provided, as was all training, told when the office had to be open, how many staff to have - was a tied agent - so could only sell their products - and was self-employed - :?

    Seriously though, I think that the larger companies have more to lose financially, so are prepared to spend the cash up front on getting watertight contracts that HMRC cannot challenge.

    Happy days :lol:

    Claudia
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean

    Annette,

    Rule book.... window.... there it goes :lol:

    Regards

    Dean
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean

    Just think of all the back NI if it can be proved to be employment.

    Seriously though there is not one rule showing that they are self employed other than the fact that they fill out their own tax returns!!

    Annette
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Attn: Dean

    Perhaps you could get away with financial risk?

    They are purely on commission, so dont sell anything dont earn anything.

    I suppose that the fitters/service guys are not guaranteed work and only paid per job.

    All in all I think that it is gob-smacking, but I have a copy of the letter which includes part of HMRC letter saying that they are happy that is self-employment in each and every case. :)

    Claudia

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