03-10-2015, 03:57
I quickly ran this past an accountant friend of mine and he believes there are a couple of issues
1] There may well be areas where they are charging VAT where there shouldnt be.
2] There may be areas where by doing things in the way that theyre doing them they are in effect charging vat twice on the same money.
And he says what other people are saying is correct if they are charging VAT then they should be displaying a VAT registration number on their site which they dont appear to be doing.
He also pointed out that the big winner here will be HMRC as VAT works on the basis that they get to keep the difference between the input and the output charges in other words you the business owner pay what you collect minus what youve payed out in VAT but i i suspect very few of you will be [or plan to ] register for VAT so they will get to keep 100% of the VAT you have paid as you wont be charging it or collecting it so wont have and input VAT to set off against your output VAT.
I only work a couple of days a week [ but spend quite a bit on advertising and promotion with AW ] so if i.ve understood it correctly i could easily declare less that the VAT earnings limit amount if i registered as say as a beautician] so therefore not have to charge it but be able to claim back what i.ve paid.
Are any of you on here VAT registered either as an escort or as something else but declaring your escort earnings thru it ?
That then leaves us with what he thinks is the major issue with all this ie the last line of the statement that AW sent us on the subject. The statement that AW has been sold and changed hands on the same day that all tis VAT stuff came into force.
If thats genuinely true then alls fine and no problems but have they manipulated a sale in some way for the new owners to avoid any liability for tax they should have been collecting but havnt in the past. and what will happen if its proved theyve done this and HMRC [or whoever] go after them to recover the missing charges.
But if nothing else it looks like its a bloody minefield thats gonna take a hell of a lot of sorting out.
1] There may well be areas where they are charging VAT where there shouldnt be.
2] There may be areas where by doing things in the way that theyre doing them they are in effect charging vat twice on the same money.
And he says what other people are saying is correct if they are charging VAT then they should be displaying a VAT registration number on their site which they dont appear to be doing.
He also pointed out that the big winner here will be HMRC as VAT works on the basis that they get to keep the difference between the input and the output charges in other words you the business owner pay what you collect minus what youve payed out in VAT but i i suspect very few of you will be [or plan to ] register for VAT so they will get to keep 100% of the VAT you have paid as you wont be charging it or collecting it so wont have and input VAT to set off against your output VAT.
I only work a couple of days a week [ but spend quite a bit on advertising and promotion with AW ] so if i.ve understood it correctly i could easily declare less that the VAT earnings limit amount if i registered as say as a beautician] so therefore not have to charge it but be able to claim back what i.ve paid.
Are any of you on here VAT registered either as an escort or as something else but declaring your escort earnings thru it ?
That then leaves us with what he thinks is the major issue with all this ie the last line of the statement that AW sent us on the subject. The statement that AW has been sold and changed hands on the same day that all tis VAT stuff came into force.
If thats genuinely true then alls fine and no problems but have they manipulated a sale in some way for the new owners to avoid any liability for tax they should have been collecting but havnt in the past. and what will happen if its proved theyve done this and HMRC [or whoever] go after them to recover the missing charges.
But if nothing else it looks like its a bloody minefield thats gonna take a hell of a lot of sorting out.
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