Dragons den

[manker]

Indeed it does.

Maybe I should take your lead and go on to post a wee epistle about deferred taxation as it follows on nicely from there

That quote from Dan; I wrote it at his house and had absolutely no recollection of it whatsoever until now. It's cheering to know that I can clerk with the best of 'em even when slightly inebriated

As long as you don't mention VAT.

I did once but I think I got away with it.

I won't if you don't

You could help perpetuate the rumour I started recently - that they did away with it in the recent tax+hmce merge.

I think it's working

[JPaul]

I like VAT as a concept, as opposed to direct taxes.

Always have done.

[manker]

I like VAT as a concept, as opposed to direct taxes.

Always have done.

It sucks having to charge it to non-VAT registered companies or individuals.

It like the govt has decided to make my services taxable to pensioners (for example) but not to multi-million pound companies.

[JPaul]

I like VAT as a concept, as opposed to direct taxes.

Always have done.

It sucks having to charge it to non-VAT registered companies or individuals.

It like the govt has decided to make my services taxable to pensioners (for example) but not to multi-million pound companies.

Tell the companies to register then.

As to the individuals, do it cash in hand. There's no VAT on cash in hand work.

[manker]

It sucks having to charge it to non-VAT registered companies or individuals.

It like the govt has decided to make my services taxable to pensioners (for example) but not to multi-million pound companies.

Tell the companies to register then.

As to the individuals, do it cash in hand. There's no VAT on cash in hand work.

An accountancy rod!

Feck arf, VAT luva.

[JPaul]

Tell the companies to register then.

As to the individuals, do it cash in hand. There's no VAT on cash in hand work.

An accountancy rod!

Feck arf, VAT luva.

Are you telling me that when I got the work done on the house and the builder chappie took cash, that he then paid VAT on it. Arse de moi.

[manker]

An accountancy rod!

Feck arf, VAT luva.

Are you telling me that when I got the work done on the house and the builder chappie took cash, that he then paid VAT on it. Arse de moi.

Only in bony Schottland would such disingenous defraudation of the hmceinlandrevenue, or whatever the feck it is now, take place

[JPaul]

We are a pragmatic people.

[brotherdoobie]

We are a pragmatic people.

I work half of the year "under the table".
My knees are just fine.

Peace bd

[Robert00000]

You can't - cars and buildings are capital expenses. It's impossible to write them off to decrease your tax.

You can claim up to 25% of a cars value and sometimes you get a 2% industrial buildings allowance but you can't write it all off in the same tax year.

Rob doesn't understand shit.

These are called Capital Allowances and are what are allowable against taxable profit. A business can depreciate its assets anyway it likes, over 1 year or over 20, reducing balance or straight depreciation. However, it matters not one jot to Gordon Brown, as for tax purposes one must use the Treasury CAs and the set rates provided. Investing in Capital Assests purely to soak surplus cash and prevent it being taxed is ok but it will play havoc with your "return on capital employed" ratios.

Sometimes assets are sold, such as a company car, If, on disposable, the value of the realised asset is greater than the written down CAs value then a taxation balance is charged.

The only things that one is allowed a 100% write off in year are computers - and this for only small businesses (Treasury defintion of business size only).

Of course operating expenses are deductable from Gross Profit ... shoes (safety, for the use of) being a good example.

One also has to be careful with investments in items classed as Goods and Chatels (i.e. the missus) as these will be subject to Capital Gains tax on their disposal if a profit is realised.

There are all sorts of other things going on such as rollover, 1980s tax rebasing (twice), change of use etc., which we should all just walk away from and pretend they don't exist.

I hope this makes everything as clear as a pint of Guiness.

Finally someone who knows what he is talking about. It corresponds with the advice i obtained.