11th August 2010, 11:55 PM
(This post was last modified: 12th August 2010, 12:25 AM by Unitof1.)
Quote:[SIZE=3]some businesses try and avoid paying VAT[/SIZE]
but i like most archaeologists try to pay the correct amount of tax
This thread is not about tax avoidance for businesses but about legitimate tax responsibilities for selfemployed archaeologist. The government gives an incentive to support people in work of a vat exemption for turnovers less than ?70000 a year. This level has been increased roughly by a ?1000 a year for the last ten years to encourage people to enter and survive in the work place.
70000 a year can be divided by 365 days of a year to produce a “you might have to register for vat rate” of: ?196.62921348314606741573033707865 per day. Does that mean that if you receive any cheque for more than this amount on any day in the year that you should register for vat tax as you is obviously beyond the threshold.
No
Quote:[SIZE=3]HMCR are of course onto the fact that some businesses try and avoid paying VAT by offsetting or spreading costs across a number of unregistered individuals or businesses (particularly in the building and construction industries).[/SIZE]
(Notice that they are not spreading their cost across time-because this statement is about a year ending account rather than a rate)
Those selfemployed archaeologists who are trying to avoid vat are obviously turning over more than ?70000 a year- how does this come about when the predominate expense is their time and the average salary is about ?20000. I undertake archaeology for a client who has the obligation to undertake archaeology. If they need to hire a machine to enable me to odserve archaeologicakl horizons it is not my expense. They are paying for my licence for my copyright. Nothing to do with machines.
If we take the wonderful tender recommendation pdf link of my previous post: to undertake 100 evaluation trenches of 25ms by 2ms ( with a contingency of an extra 1000 metres) we get a one form of cost of ?210 per trench after the machining and welfare costs are taken out -which is presented as a possible legitimate saving.
If you undertook the trench on the price of ?210 you would have to register for vat,
If you undertook the trench on the basis of one person for two days (?105/day) if there is anything there or not you would not have to register for tax. If this is tax avoidance what else should I be claiming.
If you suspect a VAT fraud
If you suspect that a firm is avoiding paying VAT, or of charging VAT when they aren't VAT registered, you can report them in confidence on the Customs Confidential hotline, 0800 595 000, open 24 hours, seven days a week.
You don't have to give your name or any personal details.
Businesses that may not charge VAT
Businesses with annual sales below ?70,000 (2010-11) don't have to register for (and therefore charge) VAT, but they may choose to do so voluntarily. If they don't, the price you pay for their goods or services will be cheaper by 20% than if you bought the same goods or services from a VAT-registered supplier.