How do you employers stay on the right side of the tax man?

[Paul Jenks]

I don't see that I am gaining financially, I am making a living. What they don't get is that domestic jobs which is 90% of my custom would then have to have VAT charged on top, the customers don't want to pay VAT and use a non VAT company, I loose. I have been through this before on many threads and I know hat works for me in my area. I really feel that the small business man get shafted not helped.

 

Please don't think that I or anyone else thinks you're making loads as a result of tax irregularities. Financial gain as a term can be misunderstood. If one fails to pay HMRC £1 that is owed, when it is owed, it is seen as financial gain.

 

Small businesses do seem to get the sh*t end of the stick a lot of the time. The role of the small business leader is bloody hard. The tenacity of the entrepenuer and his/her fight to get on and generate an income for themselves and often others inspite of the numerous obstacles.

 

The tax system is what it is and we should all work with it. Greece hasn't and look where they are. Taxes may pay for unnessecary paper pushers and Brussells doctrine and it also pays for schooling, roads, safety, hospitals, streetlights, democracy, the Olympics etc.

[nick channer]

I can see where you are coming from but say 3 lads on a days job would be £550 then the vat makes £660 if I go in and price the job at £660 chances are I wouldn't get it. It's ok saying work harder and fit another job in bit in reality that's not always possible. Fair enough it works for you but not sure it would for me.

but you wont get the job will you as someone who isnt vat registered will price it at £620 and he'l still be cheaper than you...

my acc told me when i registered that most companys will include the vat in there normal price [as you said £550]. and as your now registered and can claim vat back on everything you put through business it will even itself out somewhere along the line....

i get under cut all the time and thats with me inc the vat in the price.. if i put it on top i'd never work...

typical example this morning... priced job for £1700 inc vat... they said, and showed me quote they already had for £1550 wih no vat. [i do lot work for these people]... and they were paying them cash... i got the job for £1500 inc vat which means i get £1250 after paying the vat..

your be claiming 1000's a yr back from vat which guy down road cant dont forget.. i've noticed it more since running an artic..

£700 in the tank in diesel for instance every 2ish days... when you look at vat reciept theres nearly £120 to claim back. guy who's not registered has to swallow that...

[Hodge]

 

But also remember you can claim back so i get my fuel for £1:15 yours is £1:3? i get £70 back on my advertising every month £80 on financed kit etc etc thi list goes on so although i have to work for a bit less per day to get the domestic jobs i win on the other side, every thing i buy for business I pay VAT on so i need to be in it aswell.

 

Fair play if that works for you but I don't have the commercial clients to carry me for the domestic jobs I wouldn't get. On paper it looked very nice to be able to claim the vat back but In Reality it wouldn't work for me.

[Hodge]

Please don't think that I or anyone else thinks you're making loads as a result of tax irregularities. Financial gain as a term can be misunderstood. If one fails to pay HMRC £1 that is owed, when it is owed, it is seen as financial gain.

 

Small businesses do seem to get the sh*t end of the stick a lot of the time. The role of the small business leader is bloody hard. The tenacity of the entrepenuer and his/her fight to get on and generate an income for themselves and often others inspite of the numerous obstacles.

 

The tax system is what it is and we should all work with it. Greece hasn't and look where they are. Taxes may pay for unnessecary paper pushers and Brussells doctrine and it also pays for schooling, roads, safety, hospitals, streetlights, democracy, the Olympics etc.

 

But I'm not trying to evade paying Tax, I pay my tax and the lads that sub for me pay their tax. I'm just not employing someone as it could ruin my buisness that I have worked hard and invested my time and money into. I'm not the only one in this boat.

[nick channer]

we had a worker on farm on paye.. luckily he handed his notice in yr ago and got job outside of farming... never ever again.... i dont get paid if i'm sick. i dont get paid if i go on holiday and dont get paid when i'm ill so why the hell pay someone else to do all the above...

[Hodge]

we had a worker on farm on paye.. luckily he handed his notice in yr ago and got job outside of farming... never ever again.... i dont get paid if i'm sick. i dont get paid if i go on holiday and dont get paid when i'm ill so why the hell pay someone else to do all the above...

 

Agreed:)

[nick channer]

Agreed:)

trouble with paye is theres no real winner only the hmrc... our guy took home about £300 a week but it cost us nearly £430 aweek... and thats without the payed holiday, sick pay etc.

he's now self employed and earns the £400 week for doing same hours...

[Paul Jenks]

we had a worker on farm on paye.. luckily he handed his notice in yr ago and got job outside of farming... never ever again.... i dont get paid if i'm sick. i dont get paid if i go on holiday and dont get paid when i'm ill so why the hell pay someone else to do all the above...

 

As a director I get paid holiday. My company is an entity that rewards those who work for it. Granted, for the hours I put in I'm the lowest paid in the company by the hour. (Even in salary I'm about halfway between the highest and lowest remuneration.) Before everyone gasps in exasperation, huge financial reward is not my main driver. If I can develop my team to run the company without me and reward them accordingly and help them realise their goals, I can take a modest wage and do very little ad infinitum. Maybe start an operation in a town near you.

[Hodge]

As a director I get paid holiday. My company is an entity that rewards those who work for it. Granted, for the hours I put in I'm the lowest paid in the company by the hour. (Even in salary I'm about halfway between the highest and lowest remuneration.) Before everyone gasps in exasperation, huge financial reward is not my main driver. If I can develop my team to run the company without me and reward them accordingly and help them realise their goals, I can take a modest wage and do very little ad infinitum. Maybe start an operation in a town near you.

 

So your a ltd company? Therefore you will pay yourself dividends on top of your wage won't you? That's a whole different thread isn't it, to be ltd or not:)

[Ian C]

im Ltd as well and i pay myself holiday pay sick pay etc, but if the pots dry im the first one too loose out, swings and roundabouts!