nsmith1180:
The OD in that case would be better placed to go on the flat rate scheme. Earning 2.5k a week, it would work out based on a 50 week year at 125000, still withing scope of the scheme. Thats 25k a year in VAT but a transport company keeps half the Vat charged. So £137500 a year.
You are better off doing that than going full VAT and claiming back the VAT on your fuel for example about 10k. Don’t know how much VAT you would pay per year on servicing and other company purchases but you would need to spend 13.5k a year on VAT alone to make the full rate scheme a better option.
All of us owner drivers have accountants, and there must be a reason why not one of us has an accountant who recommends doing what you suggest.
Don’t back him into a corner ffs or we’ll be getting pages and pages about Thatcher, capitalism, the EU policies on economic markets and James ■■■■■■ Callaghan.
nsmith1180:
The OD in that case would be better placed to go on the flat rate scheme. Earning 2.5k a week, it would work out based on a 50 week year at 125000, still withing scope of the scheme. Thats 25k a year in VAT but a transport company keeps half the Vat charged. So £137500 a year.
You are better off doing that than going full VAT and claiming back the VAT on your fuel for example about 10k. Don’t know how much VAT you would pay per year on servicing and other company purchases but you would need to spend 13.5k a year on VAT alone to make the full rate scheme a better option.
All of us owner drivers have accountants, and there must be a reason why not one of us has an accountant who recommends doing what you suggest.
Are you both registered on the standard VAT scheme? I could understand an accountant not advising you to go ‘down’ to the flat rate scheme but it isn’t a stupid idea to start on it. Perhaps the accountant is afraid of the extra work when you break through the 150k threshold.
nsmith1180:
The OD in that case would be better placed to go on the flat rate scheme. Earning 2.5k a week, it would work out based on a 50 week year at 125000, still withing scope of the scheme. Thats 25k a year in VAT but a transport company keeps half the Vat charged. So £137500 a year.
You are better off doing that than going full VAT and claiming back the VAT on your fuel for example about 10k. Don’t know how much VAT you would pay per year on servicing and other company purchases but you would need to spend 13.5k a year on VAT alone to make the full rate scheme a better option.
All of us owner drivers have accountants, and there must be a reason why not one of us has an accountant who recommends doing what you suggest.
Are you both registered on the standard VAT scheme? I could understand an accountant not advising you to go ‘down’ to the flat rate scheme but it isn’t a stupid idea to start on it. Perhaps the accountant is afraid of the extra work when you break through the 150k threshold.
yes
break through the 150k threshold
broke that in my 2nd year of trading with out any trucks
nsmith1180:
Are you both registered on the standard VAT scheme? I could understand an accountant not advising you to go ‘down’ to the flat rate scheme but it isn’t a stupid idea to start on it. Perhaps the accountant is afraid of the extra work when you break through the 150k threshold.
Quite simply, anyone who runs a commercial vehicle would be insane to use the flat rate VAT scheme unless they were doing seriously low mileages. Let’s take Burnley Si for example; let’s say he puts £1200 per week of fuel in his truck (he’s sat there now thinking “I wish”). So on the flat rate scheme he has splashed out £1200, however, on the full VAT rate scheme he has still spent £1200 but £200 of that is recoverable from the HMRC. The reality is he will not get a cheque for that £200 but will be able to offset that amount against his VAT bill, so (again hypothetical figures) if his bill to HMRC was £1000 for that quarter he would offset the £200 VAT on his fuel and send HMRC a cheque for £800.
That was an oversimplification using arbitrary figure, but I’m sure you get the gist of it?
Carryfast:
In which case the example of owner driver rates being stated in adverts as + or - £1 per mile were actually all stating + or - £1 per mile + VAT ?. Which would obviously make the fuel cost calculation at least look totally different compared to + or - £1 per mile inclusive of VAT charges.
All pence per mile rates that I have ever seen quoted have been ex-VAT.
In which case as I said what happens in the example of an owner driver running for around that + or - £1 per mile but who doesn’t run enough miles over a year to meet the VAT registration threshold.In which case that would obviously mean asking for higher than the advertised rate to pay for the un recoverable fuel etc VAT charges etc ?.
On that note I can only say that none of the advertised rates for owner drivers which I enquired about made any references to them being stated as being + VAT.Although as I said ‘if’ they were it would have at least helped with making the numbers add up better,if the ads and/or person at the other end of the phone had all actually clearly stated that.
peirre:
I hate to state the bleeding obvious, but you don’t have to reach the VAT threshold to register for VAT, you can do it voluntarily.
My point was ‘if’ for whatever reason an owner driver ‘chooses’ not to bother and stays below the threshold and ‘if’ the rates advertised for owner drivers are all + VAT.Then there ‘shouldn’t’ be any problem with asking for more than the advertised rate to cover VAT costs.Then let the main contractor pass those costs on up the line to the end customer as usual.
peirre:
I hate to state the bleeding obvious, but you don’t have to reach the VAT threshold to register for VAT, you can do it voluntarily.
My point was ‘if’ for whatever reason an owner driver ‘chooses’ not to bother and stays below the threshold and ‘if’ the rates advertised for owner drivers are all + VAT.Then there ‘shouldn’t’ be any problem with asking for more than the advertised rate to cover VAT costs.Then let the main contractor pass those costs on up the line to the end customer as usual.
Have you taken and passed a transport manager’s CPC ? All the relevant information is included. As well as the need of financial standing which you clearly didn’t have.
peirre:
I hate to state the bleeding obvious, but you don’t have to reach the VAT threshold to register for VAT, you can do it voluntarily.
My point was ‘if’ for whatever reason an owner driver ‘chooses’ not to bother and stays below the threshold and ‘if’ the rates advertised for owner drivers are all + VAT.Then there ‘shouldn’t’ be any problem with asking for more than the advertised rate to cover VAT costs.Then let the main contractor pass those costs on up the line to the end customer as usual.
Have you taken and passed a transport manager’s CPC ? All the relevant information is included. As well as the need of financial standing which you clearly didn’t have.
Which part of the question,related to wether advertised rates for owner drivers are always stated as + VAT or not and the obvious implications regards fuel costings ‘if’ they are not and being stopped by lack of start up capital,isn’t consistent with that.
peirre:
I hate to state the bleeding obvious, but you don’t have to reach the VAT threshold to register for VAT, you can do it voluntarily.
My point was ‘if’ for whatever reason an owner driver ‘chooses’ not to bother and stays below the threshold and ‘if’ the rates advertised for owner drivers are all + VAT.Then there ‘shouldn’t’ be any problem with asking for more than the advertised rate to cover VAT costs.Then let the main contractor pass those costs on up the line to the end customer as usual.
Have you taken and passed a transport manager’s CPC ? All the relevant information is included. As well as the need of financial standing which you clearly didn’t have.
Which part of the question,related to wether advertised rates for owner drivers are always stated as + VAT or not and the obvious implications regards fuel costings ‘if’ they are not and being stopped by lack of start up capital,isn’t consistent with that.
Costings etc are all included in the CPC syllabus.
Rates from 1st January 2015:
Licence
type
Goods vehicles
(GVs)
Public Service
Vehicles (PSVs)
Standard First vehicle £7,000 £7,000
Each additional
vehicle
£3,900 £3,900
Restricted First vehicle £3,100 £3,100
Each additional
vehicle
£1,700 £1,700
Previous rates from 1st January 2014:
Licence
type
Goods vehicles
(GVs)
Public Service
Vehicles (PSVs)
Standard First vehicle £7,400 £7,400
Each additional
vehicle
£4,100 £4,100
Restricted First vehicle £3,100 £3,100
Each additional
vehicle
£1,700 £1,700
If you haven’t got the financial standing required, the Rates with or without Vat aren’t relevant, because you won’t get an O licence.
Dave the Renegade:
Have you taken and passed a transport manager’s CPC ? All the relevant information is included. As well as the need of financial standing which you clearly didn’t have.
Which part of the question,related to wether advertised rates for owner drivers are always stated as + VAT or not and the obvious implications regards fuel costings ‘if’ they are not and being stopped by lack of start up capital,isn’t consistent with that.
Costings etc are all included in the CPC syllabus.
If you haven’t got the financial standing required, the Rates with or without Vat aren’t relevant, because you won’t get an O licence.
I think that’s more or less what I’ve said.
While I don’t remember anything in the CPC course in the day which said that rates offered to owner drivers are guaranteed to always be + VAT.
el_presidente:
Why did you waste your money on whores?!
It’s cheaper than the cost of a wedding and the weekly housekeeping money.
Also while in the throws of passion at least I know the “lady” is faking it and I don’t have to pleasure her 1st
then we can f*** off out of this sinking country
Which would obviously make the fuel cost calculation at least look totally different compared to + or - £1 per mile inclusive of VAT charges.
