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8weekly

Dodgy window cleaners
« on: July 11, 2017, 07:19:39 am »
According to the government anyway. The irony big multi nationals not paying billions in tax yet focusing on window cleaners to rescue the economy:

http://www.bbc.co.uk/news/business-40561807

Tosh

  • Posts: 2964
Re: Dodgy window cleaners
« Reply #1 on: July 11, 2017, 07:27:11 am »
A fella I had working for me for three years would do other work, a mix of decorating and window cleaning. There were times when he'd have a decorating job worth a few thousand pounds which was paid entirely in cash. All of his window cleaning was paid in cash as well. There are window cleaners who are paid entirely in cash and never appear above the radar so far as the tax-man is concerned.


People who don't contribute to society invariably are the ones who need the services a government provides yet they aren't able to put two and two together and realise someone has to pay for it. Well, they do but don't give a $hit about that.


Quite often I contemplate contacting HMRC over a couple I know. When I say a couple I mean the fella who worked for me and his girlfriend who's a domestic cleaner, so same payment structure for her as him.


Dim, thick and tax avoiders. One day ...
*A HISTORY OF THE UNIVERSE - THE SHORT STORY* 'Hydrogen is a light, odorless gas, which, given enough time, turns into people.'

8weekly

Re: Dodgy window cleaners
« Reply #2 on: July 11, 2017, 07:49:16 am »
A fella I had working for me for three years would do other work, a mix of decorating and window cleaning. There were times when he'd have a decorating job worth a few thousand pounds which was paid entirely in cash. All of his window cleaning was paid in cash as well. There are window cleaners who are paid entirely in cash and never appear above the radar so far as the tax-man is concerned.


People who don't contribute to society invariably are the ones who need the services a government provides yet they aren't able to put two and two together and realise someone has to pay for it. Well, they do but don't give a $hit about that.


Quite often I contemplate contacting HMRC over a couple I know. When I say a couple I mean the fella who worked for me and his girlfriend who's a domestic cleaner, so same payment structure for her as him.


Dim, thick and tax avoiders. One day ...
Yes, I agree with that, but it's peanuts compared to the off shoring etc.

PHILIP HARDY

  • Posts: 189
Re: Dodgy window cleaners
« Reply #3 on: July 11, 2017, 08:12:10 am »
Its all smoke and mirrors nonsence, the Government gets all your money anyway, whether its taxed at source or indirectly, 20% of everthing you spend is tax (VaT), unless you totally hide it and acumulate millions (very difficult in the current climate), The Government will have taken there share, 65% of you petrol spend goes on tax, The big corperations shift it offfshore and thay are the real problem,removing money from the ecomomy.
 The self employed put alot of it back and as it circulates the government skims a very nice chunk, 20% on you van, 20% on all you home improvements, your Gardiners bill, your funeral,your water,electricity,gas its all taxed you could all pay it at source in income tax or have more to spend and pay it along the way, either way, they can only get it once.
The Stupid Neither Forgive Nor Forget
The Naive Forgive And Forget
The Wise Forgive But Don't Forget

Marc Stock

Re: Dodgy window cleaners
« Reply #4 on: July 11, 2017, 11:04:06 am »
In addition to this I know a few people who have set up several businesses all doing the same thing to avoid paying VAT.

what goes around comes around.


Stoots

  • Posts: 6213
Re: Dodgy window cleaners
« Reply #5 on: July 11, 2017, 11:08:05 am »
In addition to this I know a few people who have set up several businesses all doing the same thing to avoid paying VAT.

what goes around comes around.

Can this be done if seperate businesses? i.e window cleaning company and a decorating company ?

8weekly

Re: Dodgy window cleaners
« Reply #6 on: July 11, 2017, 11:09:35 am »
The thing that irritates me more than anything are the ones employing people and calling them self employed. There's one local firm with three vans, all self employed staff and not vat registered.

Marc Stock

Re: Dodgy window cleaners
« Reply #7 on: July 11, 2017, 12:41:32 pm »
The thing that irritates me more than anything are the ones employing people and calling them self employed. There's one local firm with three vans, all self employed staff and not vat registered.

Well not for long. They are looking at coming down harder on this so called gig economy.  That irritates me too. Like I said when they get found out they will go out of business.

Marc Stock

Re: Dodgy window cleaners
« Reply #8 on: July 11, 2017, 12:57:23 pm »
In addition to this I know a few people who have set up several businesses all doing the same thing to avoid paying VAT.

what goes around comes around.

Can this be done if seperate businesses? i.e window cleaning company and a decorating company ?

If you have a ltd company offering window cleaning services, and a ltd company offering decorating services and the geographical location is the same, the customer base is the same you are essentially the sole director of each or one of them then no you are breaking the law. So a customer who you did a window cleaning job with your window cleaning company suddenly wants you to do decorating and you do that through your decorating company this is a blatant artifical seperation of trade. HMRC will take you to the cleaners for unpaid vat. As they will argue that the two companies mutually benefit each other that you are a director of.

What you really should do is have ABC ltd as window cleaning & decorating services and pay the VAT.

Now if you were a director of ABC window cleaning in London for example, and DEF decorating in Birmingham. Then this would be more likely to be passable as the geographical location of the two are not mutually benifical. However, it will still be at the discretion of HMRC on a case by case basis.

Bottom line is this... when you hit VAT just bite the bullet and register.



jo5hm4n

  • Posts: 948
Re: Dodgy window cleaners
« Reply #9 on: July 11, 2017, 01:43:39 pm »
The way to get around being VAT registered if you own several companies is simple.  You just need to make one of the businesses a partnership.  Use a friend/family and make them a silent partner in the business.  I know tons of people who do this and it is legitimate.

8weekly

Re: Dodgy window cleaners
« Reply #10 on: July 11, 2017, 01:59:29 pm »
The way to get around being VAT registered if you own several companies is simple.  You just need to make one of the businesses a partnership.  Use a friend/family and make them a silent partner in the business.  I know tons of people who do this and it is legitimate.
Nonsense.

Marc Stock

Re: Dodgy window cleaners
« Reply #11 on: July 11, 2017, 02:16:29 pm »
The way to get around being VAT registered if you own several companies is simple.  You just need to make one of the businesses a partnership.  Use a friend/family and make them a silent partner in the business.  I know tons of people who do this and it is legitimate.

Complete rubbish.

Stoots

  • Posts: 6213
Re: Dodgy window cleaners
« Reply #12 on: July 11, 2017, 02:34:27 pm »
In addition to this I know a few people who have set up several businesses all doing the same thing to avoid paying VAT.

what goes around comes around.

Can this be done if seperate businesses? i.e window cleaning company and a decorating company ?

If you have a ltd company offering window cleaning services, and a ltd company offering decorating services and the geographical location is the same, the customer base is the same you are essentially the sole director of each or one of them then no you are breaking the law. So a customer who you did a window cleaning job with your window cleaning company suddenly wants you to do decorating and you do that through your decorating company this is a blatant artifical seperation of trade. HMRC will take you to the cleaners for unpaid vat. As they will argue that the two companies mutually benefit each other that you are a director of.

What you really should do is have ABC ltd as window cleaning & decorating services and pay the VAT.

Now if you were a director of ABC window cleaning in London for example, and DEF decorating in Birmingham. Then this would be more likely to be passable as the geographical location of the two are not mutually benifical. However, it will still be at the discretion of HMRC on a case by case basis.

Bottom line is this... when you hit VAT just bite the bullet and register.

Ah ok. It had crossed my mind when and if onr day i was getting close to vat to start another  business altogether like plumbing or ebay business or whatever and get that one up to vat limit and so on.

andyM

  • Posts: 6100
Re: Dodgy window cleaners
« Reply #13 on: July 11, 2017, 02:42:46 pm »
What about fiddling expenses, is that aloud?
One of the Plebs

jo5hm4n

  • Posts: 948
Re: Dodgy window cleaners
« Reply #14 on: July 11, 2017, 05:52:36 pm »
The way to get around being VAT registered if you own several companies is simple.  You just need to make one of the businesses a partnership.  Use a friend/family and make them a silent partner in the business.  I know tons of people who do this and it is legitimate.
Nonsense.


If you have a window cleaning business operating as a sole trader turning over say £70,000 per year, and another business in a completely unrelated industry set up as a equal partnership and your turnover is say £70,000, the total amount across all of your businesses has surpassed the VAT Threshold of £83,000, yet legally you don't need to be registered for VAT.  This is legitimate, i know several local people in my area doing this, i even asked my own chartered accountant and she said technically it is a legal loophole and there isn't anything wrong with it.

If somebody can provide evidence to suggest otherwise i really genuinely would like to hear it, i'm only going off what i have researched so far.



֍Winp®oClean֍

  • Posts: 1689
Re: Dodgy window cleaners
« Reply #15 on: July 11, 2017, 06:13:44 pm »
In addition to this I know a few people who have set up several businesses all doing the same thing to avoid paying VAT.

what goes around comes around.

Can this be done if seperate businesses? i.e window cleaning company and a decorating company ?

If you have a ltd company offering window cleaning services, and a ltd company offering decorating services and the geographical location is the same, the customer base is the same you are essentially the sole director of each or one of them then no you are breaking the law. So a customer who you did a window cleaning job with your window cleaning company suddenly wants you to do decorating and you do that through your decorating company this is a blatant artifical seperation of trade. HMRC will take you to the cleaners for unpaid vat. As they will argue that the two companies mutually benefit each other that you are a director of.

What you really should do is have ABC ltd as window cleaning & decorating services and pay the VAT.

Now if you were a director of ABC window cleaning in London for example, and DEF decorating in Birmingham. Then this would be more likely to be passable as the geographical location of the two are not mutually benifical. However, it will still be at the discretion of HMRC on a case by case basis.

Bottom line is this... when you hit VAT just bite the bullet and register.

Ah ok. It had crossed my mind when and if onr day i was getting close to vat to start another  business altogether like plumbing or ebay business or whatever and get that one up to vat limit and so on.

Like you do.... ;D
Comfortably Numb!

Arnold Palmer

  • Posts: 20800
Re: Dodgy window cleaners
« Reply #16 on: July 11, 2017, 06:19:01 pm »
The way to get around being VAT registered if you own several companies is simple.  You just need to make one of the businesses a partnership.  Use a friend/family and make them a silent partner in the business.  I know tons of people who do this and it is legitimate.
Nonsense.


If you have a window cleaning business operating as a sole trader turning over say £70,000 per year, and another business in a completely unrelated industry set up as a equal partnership and your turnover is say £70,000, the total amount across all of your businesses has surpassed the VAT Threshold of £83,000, yet legally you don't need to be registered for VAT.  This is legitimate, i know several local people in my area doing this, i even asked my own chartered accountant and she said technically it is a legal loophole and there isn't anything wrong with it.

If somebody can provide evidence to suggest otherwise i really genuinely would like to hear it, i'm only going off what i have researched so far.

If you're that confident, phone up HMRC, tell them what you're up to, see how that goes.
#aliens

Frankybadboy

  • Posts: 9022
Re: Dodgy window cleaners
« Reply #17 on: July 11, 2017, 06:44:36 pm »
i also know of window cleaners who sell parts of there rounds off for cash


how shocking that would be  :) ;D ;D ;D ;D

Tosh

  • Posts: 2964
Re: Dodgy window cleaners
« Reply #18 on: July 11, 2017, 07:07:09 pm »
i also know of window cleaners who sell parts of there rounds off for cash


how shocking that would be  :) ;D ;D ;D ;D

But there's no difference in selling part of your round for cash than cleaning someone's windows for cash. You're assuming because it's sold for cash it isn't declared.
*A HISTORY OF THE UNIVERSE - THE SHORT STORY* 'Hydrogen is a light, odorless gas, which, given enough time, turns into people.'

Frankybadboy

  • Posts: 9022
Re: Dodgy window cleaners
« Reply #19 on: July 11, 2017, 07:13:26 pm »
i also know of window cleaners who sell parts of there rounds off for cash


how shocking that would be  :) ;D ;D ;D ;D

But there's no difference in selling part of your round for cash than cleaning someone's windows for cash. You're assuming because it's sold for cash it isn't declared.
and who would do a thing like that  ;D :D