VAT on Timber for Firewood

[TimberCutterDartmoor]

20% on wholesale roundwood / other; 5% on domestic / end user / retail logs.

 

Firewood merchants have a serious love affair with cash (I wonder why) which drives us cutters and hauliers mad; what can we do with cash?! Costs us money.

 

Said merchants imo should just do it properly; if they're paying 20% on raw material and charging 5% (assuming they're vat reg'd) on sales they are in theory between 10 and 15% better off based on 20% on one ton producing 2 x 1m3 loads with 5% on each...

[the village idiot]

Do you use it around your waistband?

 

Weddings and funerals only. Baler twine day to day.

[eggsarascal]

Weddings and funerals only. Baler twine day to day.

 

Sounds posh around your parts.

[the village idiot]

You leave my parts out of this!

[timbernut]

20% on wholesale roundwood / other; 5% on domestic / end user / retail logs.

 

 

 

Firewood merchants have a serious love affair with cash (I wonder why) which drives us cutters and hauliers mad; what can we do with cash?! Costs us money.

 

 

 

Said merchants imo should just do it properly; if they're paying 20% on raw material and charging 5% (assuming they're vat reg'd) on sales they are in theory between 10 and 15% better off based on 20% on one ton producing 2 x 1m3 loads with 5% on each...

 

 

Surely it's only the smaller merchants who arnt VAT reg who are the cash pests as they can't claim the 15% back? Personally I like cash as it's quick turnover (like BACS). Cheques are a pain!

[woody woodpecker]

Surely it's only the smaller merchants who arnt VAT reg who are the cash pests as they can't claim the 15% back? Personally I like cash as it's quick turnover (like BACS). Cheques are a pain!

 

timbernut is offline

 

What do you mean by cash pests ?

[gensetsteve]

I would imagine a cash pest is someone who wants to pay with cash to avoid the 20% vat. Then sell the logs 5% cheaper than everyone playing by the book.

[woody woodpecker]

Hi Steve

If they are paying cash ,surely the haulier should now that they have to pay 20% if they are a firewood merchant and so by producing a non vat receipt is also leaving himself wide open for investigation by h.m inspectors.

[timbernut]

I would imagine a cash pest is someone who wants to pay with cash to avoid the 20% vat. Then sell the logs 5% cheaper than everyone playing by the book.

 

 

Spot on! But as I said before I like cash as it's a quick turnaround compared to cheques. Also I've never been able to get over the warm feeling a fat wedge gives me;) ( even if it's only for a short while before bein deposited )

[gensetsteve]

Hi Steve

If they are paying cash ,surely the haulier should now that they have to pay 20% if they are a firewood merchant and so by producing a non vat receipt is also leaving himself wide open for investigation by h.m inspectors.

 

You can not do a non vat invoice if registered. You would be taking a big risk as what comes in needs to add up to what goes out.