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

[Rick2517]

Thanks Rick, I think it's the way forward.

 

Another big incentive for me was when my accountant told me I can claim back all VAT on purchases for the last 2 years (not 100% sure if it was 2, maybe more)

[Hodge]

Another big incentive for me was when my accountant told me I can claim back all VAT on purchases for the last 2 years (not 100% sure if it was 2, maybe more)

 

It's 3 years for equipment I believe:)

[Ian C]

Cheers, the more I have looked into it and gone through my books its the only option. I will be employing my groundy as I want to be above board with everything.. Thanks for your input. I had a look at your website, which one are you?

 

The tall good looking on on the right !!!!!

 

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[Ian C]

Yes its 3 years for equipment 6months fot fuel.

 

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[Hodge]

Yes its 3 years for equipment 6months fot fuel.

 

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Cool, Thanks.

[Gareth Dalzell]

Well it looks as if its all going to become irrelevant sooner or later, HMRCE look like they are gunning for all industries to comply with PAYE regulations, and supply a leaflet called "Use of Labour Providers...advice on due diligence". And yes it also looks like they will attempt to re-coup unpaid taxes from employers if they feel you should be employing staff on the books as opposed to using the self-employment status many fly under at the minute, this isn't necessarily unpaid taxes of the self-employed, but the evasion of the taxes and NI contributions the employer would have made had the staff been on the books.

 

Never a truer word has been spoken. If you read last months FCA magazine you'll see HMRC are targeting the Forestry sector as we speak. And they are quite concerned at it's lack of regard for PAYE NIC and so on. They've already met with several stake holders, called some meetings and carried out a few prelim investigations and they're not happy chappies about this sector.

[Gareth Dalzell]

You're doing the right thing Hodge. We've been vat reg'd for 20 years now, incorporated/Ltd for 15 and employing PAYE for 21 years. Either get your accountant or payrol bureau to do the wages paper work or get a accounting package. The returns will mostly have to be done online shortly even for smaller businesses.

 

You may have to revisit your costs and plan abit further ahead. When you are setting up your contract of employment ensure you get it checked out properly. We use the Labour Relation Agency service for which there is no charge overhere.

 

You'll have a bit of setting up to do, insurance, contract, Paye etc to sort but once you've got it done when you employ the next person it's sitting there.

You can get free advice from various agencies and trade associations. A probably on here.

 

Go for it, it's the best way to grow your business and profitability long term.

[Dean O]

Hodge - dont worry so much about going VAT reg

I worried about it for the same reasons you are - but you cant fight it.

 

In reality you dont need to put your prices up by the 20% it seems you may have to as you get VAT "back" on purchases etc.

If you do loose work because of the increase in cost to your clients then you'll drop bellow the VAT threshold again anyway.

 

You will loose some clients, some of which will be regular customers - you cant fight this either unless you want to be the cheepest guy around.

 

If price is no longer to be your USP then simply dont compete on price. Use your charm, good looks and quality of work.

[Hodge]

Hodge -

 

If price is no longer to be your USP then simply dont compete on price. Use your charm, good looks and quality of work.

 

I'm screwed then:) Ha,Ha. Cheers for the advice much appreciated.

[roseyweb]

Chewed this thread over deeper than I normally would any other thread last night

 

Spoke to my subby lad today who is on 3 - 4 days a week and asked how his tax return was doing. He's crap with money and a bit simple but told me hes going to declare bankrucy soon so won't need to pay it.

Told him he'll have work again when he brings me a copy of his completed paid tax return.

I don't think tax dogging is cool,