Originally posted by DeludedKitten
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Blog? What blog...? -
Originally posted by malvolio View PostSince VAT is a tax on added value to a commodity through a service (the clue is in the name), why is that a problem?
Originally posted by malvolio View PostIt is our work that creates a VAT liability and ultimately, income to the Exchequer. If we're comparing apples with apples, all generated taxes have to be included. Someone has to pay the ultimate difference between input and output VAT, even if it's quite a way down the line, so in revenue terms it is not tax neutral at all.
As I have said a number of times now, including something in your argument that is easy to rebut makes it easy to discount your entire argument. If your circumstances mean that VAT isn't neutral (and I'd think that many roles for people here are not VAT revenue neutral) then include it in the argument. But repeatedly saying "I add £30k a year in VAT" when that is entirely reclaimed and isn't passed on to anyone down the line (even way down the line) means that anyone who understands VAT can point that out, pick one hole, and then use that to extrapolate and ignore any valid points you are making.I'm not fat, I'm just fluffy.Comment
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Originally posted by DeludedKitten View PostI didn't say it was a problem.
I provide my services to a blue chip client to improve their processes. I charge them VAT. They reclaim the VAT. There is nobody to pass this onto. It is neutral.
As I have said a number of times now, including something in your argument that is easy to rebut makes it easy to discount your entire argument. If your circumstances mean that VAT isn't neutral (and I'd think that many roles for people here are not VAT revenue neutral) then include it in the argument. But repeatedly saying "I add £30k a year in VAT" when that is entirely reclaimed and isn't passed on to anyone down the line (even way down the line) means that anyone who understands VAT can point that out, pick one hole, and then use that to extrapolate and ignore any valid points you are making.
HTH. BIDI.Blog? What blog...?Comment
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Originally posted by malvolio View PostSince VAT is a tax on added value to a commodity through a service (the clue is in the name), why is that a problem? It is our work that creates a VAT liability and ultimately, income to the Exchequer. If we're comparing apples with apples, all generated taxes have to be included. Someone has to pay the ultimate difference between input and output VAT, even if it's quite a way down the line, so in revenue terms it is not tax neutral at all.
2 points
1) HMRC consider VAT revenue neutral in our situation. Yes there are exceptions (note the NHS tax avoidance issues last week) but they are (quite) minor exceptions.
2) HMRC have a habit of ignoring statements once they've identified things that are wrong. Hence if you talk about VAT in a consultation response they could ignore the other arguments due to the part of it being inaccurate (to their eyes)...
Oh and this is a done deal - for those who haven't retired yet how are you planning to escape the replaceable bum on seat market...Comment
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Originally posted by malvolio View PostIf all VAT were cost neutral it wouldn't work.
HTH. BIDi.I'm not fat, I'm just fluffy.Comment
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Originally posted by malvolio View PostNo it's not. That cost appears somewhere in the consumer chain, even if it's via a retailer recovering his costs of doing banking, which costs will include a margin for non-reclaimable VAT costs, and recovering his input VAT from his customer.
I understand VAT. I was in accountancy when it was implemented, and it hasn't really changed since. If VAT were cost neutral it wouldn't work.
HTH. BIDI.Comment
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