Reply to: Anyone taking up the offer of a VAT deferment?

[pickod]

Paid mine , no point putting it off

[oilboil]

I assume what he must have meant was a good friend who does accounting. I can't see a good accountant firing a blank as big as that one.

Well the girl is an accountant of long standing but hey that doesn't matter as it doesn't match NLUK's view of the world so they must be wrong - "Golden Rule of CUK Forums"

Ultimately if they are wrong (and as I said they only suspected it) then I'm no worse off if I pay it at the end of the year, I they are correct then I don;t have to pay it

Seems like a no win no fee concept to me

[d000hg]

I would say they'd do it on a future quarter if at all. Seems unlikely. Or maybe some CT relief.

[northernladuk]

This won't happen, they'll have enough of these with liquidations.

I assume what he must have meant was a good friend who does accounting. I can't see a good accountant firing a blank as big as that one.

[Andy Hallett]

I'd generally agree, but a good accounting friend suggested that there is a possibility that whilst its currently a deferral it could well be cancelled in the future - so in case they are correct I'm going to hold on to it

This won't happen, they'll have enough of these with liquidations.

[northernladuk]

I'd generally agree, but a good accounting friend suggested that there is a possibility that whilst its currently a deferral it could well be cancelled in the future - so in case they are correct I'm going to hold on to it

Bearing in mind they pulled £34,231m Oct to Dec last year I very very much doubt they will be writing that off.

You friends with scooter in real life or something?

[ladymuck]

I'd generally agree, but a good accounting friend suggested that there is a possibility that whilst its currently a deferral it could well be cancelled in the future - so in case they are correct I'm going to hold on to it

Hmm...HMG is going to need every penny they can muster to cover the trillions they will end up spending. I can't see them forgiving debts somehow.

[oilboil]

as a one man contractor it's not cashflow that should worry you. If you have insufficient cash you are more than likely insolvent.
Holding on to VAT doesn't give you any rights to spend it so there's no advantage.

If you're a real business with staff, rent, equipment lease, etc, then deferring VAT may be the difference between bankruptcy and not, but that is unlikely to be the case for a contractor.

So pay the VAT as there's no benefit in not doing.

I'd generally agree, but a good accounting friend suggested that there is a possibility that whilst its currently a deferral it could well be cancelled in the future - so in case they are correct I'm going to hold on to it

[dx4100]

How many weeks does it take to start getting benefits?

5 weeks

[d000hg]

How many weeks does it take to start getting benefits?

[dx4100]

Unless you have to. Like to put food in your family's mouths and keep a roof over their heads, not so you can make a mortgage payment on time.

I seriously doubt spending the tax mans money is wise even in that situation... You are just adding problems on top of problems...

The correct course of action in that situation is to pay the tax and make a benefits claim.

[Batcher]

I paid mine the day they announced it could be deferred but I would have paid it anyway.

I once paid VAT too early and had all sorts of strife from HMRC. They couldn’t see I had paid because it had gone into the wrong quarter and they couldn’t seem to marry up what I had paid and what I was due. They said I couldn’t get into their debt again for 12 months or I would have to pay a penalty despite me not being in debt.

I wouldn’t give them the excuse to chase me for anything now.

[d000hg]

Rule 1 : don’t spend the tax money

Rule 2 : follow rule 1

Unless you have to. Like to put food in your family's mouths and keep a roof over their heads, not so you can make a mortgage payment on time.

[b0redom]

I'm deferring for as long as possible and investing it all in Crypto. What could possibly go wrong? Scooter says so.....

[dx4100]

Rule 1 : don’t spend the tax money

Rule 2 : follow rule 1