Why do we have to pay VAT on our equipment

[daltontrees]

The boring answer is this. You pay VAT on everything that is not exempted by the VAT Act 1994. It lists everything including (Group 16 Item 2 of Schedule 8) "The supply to a person for use otherwise than by employees of his of protective boots and helmets for industrial use". The word 'safety' is not used.

[skyhuck]

That's right . It's not a luxury it's essential . So to beat the VAT man we should go to work wearing just helmet and safety boots and nothing else and using condoms to climb the tree !!

 

The majority of goods that are subject to VAT are none luxuries, why should our gear be any different??

 

Do you think taxi drivers consider fuel a luxury??????

[daltontrees]

The majority of goods that are subject to VAT are none luxuries, why should our gear be any different??

 

Do you think taxi drivers consider fuel a luxury??????

 

If you drive a rickshaw you do!

[TGB]

I reckon that since the industry HS regulators specify certain PPE. Then said PPE is a necessity and not a luxury. I whole heatedly disagree with applying VAT to industry recognised PPE.

[RichieR]

Yep thanks for sharing my sentiment. It doesn't matter about claiming back or tax rates etc etc etc. the equipment we use are to protect us from serious harm which without proper training or equipment is more likely than unlikely

[Mick Stockbridge]

Does it still stand for value added tax?

[RichieR]

Yes it does . But it is a tax on luxury goods and not on essentials. Would you call your PPE and climbing equipment luxuries or to protect you in your work

[Alycidon]

I assume the op is not vat registered otherwise it would make no difference and so no reason to post. I am vat registered and can claim it back.

 

Just a side note I often employ lads that are not vat registered and although I cant claim vat back I offset their whole bill on tax so they are not at such a disadvantage for example.

 

£100 + vat = £120 - Vat = £100 - 25% Tax at end of year =£75

 

£120 no vat = £120 -25% = £90

 

 

 

Thats correct, no VAT number on the invoice supplied to you and you cant claim either.

 

A

[daltontrees]

Yes it does . But it is a tax on luxury goods and not on essentials. Would you call your PPE and climbing equipment luxuries or to protect you in your work

 

You just have to bite the bullet on this. VAT was once a tax on luxury goods, but it's not that clear now. It is a tax on what the VAT Act says its a tax on, and that is all that matters to HMRC.

[SamWhiting12]

You just have to bite the bullet on this. VAT was once a tax on luxury goods, but it's not that clear now. It is a tax on what the VAT Act says its a tax on, and that is all that matters to HMRC.

 

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