vat registration

[Guest rich]

just had a visit from vat office

they have told me to register or face prosecution!

i being a small scared person have already instructed my accountant to fill in forms etc;

but have noticed some others around the trade are staying under threshold,

the inspectors from vat have implyed to me that no shop keeper can stay under the limit. as rent/rates etc are too high

thing is - how do people stay so low and get away with it?

[Auto Key Wizard]

We all know how poeple stay so low as you put it

It's called fraud, not declaring their full takings/Disclosure of Taxes

 

As for them getting away with it, they will in the short term, but probally not long term, HMRC (HM Revenue & Customs) have the power to investigate any case & go back over a number of years of trading, & even when a company has ceased trading

 

The five questions which are asked in relation to Direct Taxes:

Question 1

 

Have any transactions been omitted from or incorrectly recorded in the books of any business with which you are or have been concerned whether as a director, partner or sole proprietor to the best of your knowledge or belief?

Question 2

 

Are the accounts sent to the H M Revenue & Customs for each and every business with which you are or have been concerned whether as a director, partner or sole proprietor, correct and complete to the best of your knowledge and belief?

Question 3

 

Are all the tax returns of each and every business with which you are or have been concerned whether as a director, partner or sole proprietor correct and complete to the best of your knowledge and belief?

Question 4

 

Are all your personal tax returns correct and complete to the best of your knowledge and belief?

Question 5

 

Will you allow an examination of all business books, business and private bank statements and any other business and private records in order that HM Revenue & Customs may be satisfied that your answers to the first four questions are correct?

 

False statements can result in a criminal investigation with a view to prosecution.

 

 

The four questions which are asked in relation to Value Added Tax:

Question 1

 

Have any transactions been omitted from, or incorrectly recorded, in the books and records of (name of legal entity) for which you are (responsible status)?

Question 2

 

Are the books and records you are required to keep by HM Revenue & Customs for (name of legal entity) for which you are (responsible status), correct and complete to the best of your knowledge and belief?

Question 3

 

Are all the VAT returns of the (name of legal entity) for which you are (responsible status) correct and complete to the best of your knowledge and belief?

Question 4

 

Were you aware that any of the VAT returns were incorrect or incomplete at the time they were submitted?

 

False statements may result in a criminal investigation with a view to prosecution.

 

 

[TITs]

your starting to freak me out Tel

with the tin flute you had on sunday and your

extensive HM Gov facts and figures i would not be surprised to discover you were an undercover mole .......................

 

The vat & Tax work on simple but very effective models that just require

very few details to do a full projection of any business.

 

I have had 3 investigations in 10 years . Vat & TAX

 

and its tough but they are fair to deal with if your upfront and honest.

 

You have no need to fear VAT registration unless your telling lies.

 

If your turnover does not require registration ( DONT DO IT )

 

And most of all , dont be instructing your profesional advisors

( Accountants) ASK him his advice , he is your accountant , listen to his advice not the advice of the inspectors, IF you jump right into registration they will be all over you in a heart beat, You will look as if you have been evaiding tax and have only registered because they rumbled you.

[Auto Key Wizard]

your starting to freak me out Tel

with the tin flute you had on sunday and your

extensive HM Gov facts and figures i would not be surprised to discover you were an undercover mole .......................

 

I haven't always been a Cobbler

[ironplanet uk900]

just had a visit from vat office

they have told me to register or face prosecution!

 

If they have told you this, it would suggest you are over the limit and they know it. just registering now will not save your skin. But if they had evidence that you should be vat registered, they wouldn't say "register or face prosecution" you would be under investigation now for previous none payment. So on this basis I think this is a load of old cobblers .

You will be investigated, and if you should have been registered 5 years ago you will be made to pay. No excuses no pay as you can afford, pay now.

 

1, pay the vat man.

 

2, pay the tax man.

 

3, pay your landlord.

 

If your under the thresh hold theres no need to worry.

 

(Note) If this post gets personal to any member it will be deleted, as this has been done before. Thanks.

[3D Group]

It is a pain in the A?£ hole if the other local shop is not VAT registered. You then have to be 17.5% cheaper then them to be the same price. If you think someone else is playing around & it disrupts your business then tell the VAT office. You never know someone may have done the same to you.

[keithm]

I'm sorry guys, but any business that is not registered but trading in a High St position is, as the Tax man says, trading under false pretenses! How can anyone make a decent living on less than £1100pw takings, it just doesn't add up!

 

They used to work it out based on a Gross Profit Ratio, GPR. If it was below around 60%, they would delve deaper. My accountant always used to work mine out for me so at the end of the year, I could see at a glance what mine was. Mind you, he would be on my case if it went below 67% anyway

 

The Tax man has GPR's for every business out there, so if your's is under the norm, you might wish to look at it a little closer

 

Food for thought!

 

Keith

[Guest blank]

agree withyou all - how can any one (even in this trade) pay rent overheads etc - pay a mortgage - run a car? for heavens sake its so wrong!! i am glad someone has actually got caught!

[ironplanet uk900]

Who got caught..........k4rich, first sign of madness talking to yourself

[hibsjo(SCO)]

Are you saying K4MC is actually Rich?

thats low

[Hugh-Candoit (ENG)]

One could of course limit the workload to below the threshold and then close down for winter & summer holidays. That would mean that you would not get near to the stated amount.

 

But who would want to limit their takings?

Perhaps old codgers like me who cant be bothered making the effort just to pay the VAT man.

The only VAT that I like contains alcohol.

[ironplanet uk900]

 

[Hugh-Candoit (ENG)]

Good line drawing of you UK, good to see your missus pic on the wall, nice touch that. Cant just read the phone number though