Why is it that we seem to be incapable of finding professional representation

[Pondlife]

Unless your VAT on purchases exceeds that amount.

Well then FRVS probably isn't suitable for you.

[MarkT]

Well then FRVS probably isn't suitable for you.

I bet Matt Searle will be getting a brown envelope soon from HMT asking about his affairs over the past 29 tax years

[SimonMac]

I'm Matt Searle, and so is my wife!

No I am Matt Searle and so's my wife!

Bollocks beat me to it!!

So that's what the B stands for

[mudskipper]

Matt Searle is an anagram of Easter Malt - so what's everyone stocking up on for the weekend?

[bobspud]

chances are that the 24K
I you charge will be claimed back on their VAT return, so it's neutral to HMRC.

No it isn't they get to hold an awful lot of money for interest before giving it back...

And as you state there are lots of sectors that cant claim it back.

[BrilloPad]

Thought it started in 1999 with the introduction of IR35

It started in 2008. Retrospectively applied to 1999.

[Pondlife]

No it isn't they get to hold an awful lot of money for interest before giving it back...

And as you state there are lots of sectors that cant claim it back.

I'm not following you.

You keep hold of the money earning interest from the point you've collected it to the point you pay what's owed to HMRC.

[bobspud]

I'm not following you.

You keep hold of the money earning interest from the point you've collected it to the point you pay what's owed to HMRC.

I'll try and explain it better.

I invoice Dodgy forone day of effort at £100 + £20 Vat
He in turn invoices his client for 150 + £30 vat
His client is a systems integrator to a government agency and takes 60 days to pay his invoice + cant bill their end client (a government agency) until a milestone is reached.

In the chain:
I get £20 and give most of it to HMRC
Dodgy reclaims £20 but also hands over most of the £30
Then the integrator reclaims the £30 but then charges the client their fees + £1500 vat in three months or more when the milestone is billed.
Its worth noting that if the end client is not VAT registered then the money chain ends and HMRC win.

I think that there is also another accounting oddity for government departments that prevents them reclaiming vat for their budget if they don't settle the bill in the same period as its issued


At Various points HMRC has held on to money while the various parties are waiting for their respective vat period to end. Some vat is claimed back but its hard to claim more vat back than you collect without going bust so HMRC always win eventually in the chain.

[TheFaQQer]

Matt Searle is an anagram of Easter Malt - so what's everyone stocking up on for the weekend?

If you expand it to Matthew, then it's an anagram of The Lame Waster....

[northernladuk]

If you expand it to Matthew, then it's an anagram of The Lame Waster....

Get a room you two!!