Presentation is loading. Please wait.

Presentation is loading. Please wait.

Glyn Edwards AIIT VAT Consultant. Question: What makes lap-dancing clubs interesting? Answer:VAT!!!!! 2.

Similar presentations


Presentation on theme: "Glyn Edwards AIIT VAT Consultant. Question: What makes lap-dancing clubs interesting? Answer:VAT!!!!! 2."— Presentation transcript:

1 Glyn Edwards AIIT VAT Consultant

2 Question: What makes lap-dancing clubs interesting? Answer:VAT!!!!! 2

3 The Tri-Partite Relationship The ClubCustomers Dancers Door fee & bar Cash for Chips Chips or cash for dances/ ‘sit-downs’ Chips for Cash Licence Payment 3

4 ‘Services to the Salon’ Structure Hair SalonCustomer Stylist Supply (say £100k p.a.) Subcontract or employee (say £50k) Lost VAT £14k 4

5 ‘Services to the Customer’ Structure Hair SalonCustomer Stylists Chair Rent/Use of Facilities (£50k) Supply (£50k) 5

6 Taxi Firm as Principal Taxi FirmCustomer Taxi Driver Supply (say £100k p.a.) Subcontract or employee (say £50k) Lost VAT £14k 6

7 The Taxi Firm as Agent Taxi FirmCustomer Driver Radio Rental & Commission (£50k) Supply (£50k) 7

8 The Taxi Firm as Agent & Principal Taxi Firm Private Customers Driver Radio Rental & Commission (£50k) Cash Business Customers Account Driving Services 8

9 Agency is most effective when….. Customers are unable to reclaim VAT Contractors are operating below Registration threshold BUT – Customs hate any VAT-saving device and regard agency as a risk to the revenue 9

10 Agency – Getting It Right 1. Always have written agreements 2. The principal must be know the value of their supply and the amount of any commission 3. Negotiation – this is key in the Spearmint Rhino decision 4. Control – the principal must be able to control his business as far as possible 10

11 Other Examples of Agency Staff agencies – where customer cannot claim VAT e.g. health, banking Massage parlours Education – to benefit from the exemption for individual teachers 11

12 Medical Staff Alert for medical staff agencies ….Supplying staff as principal 12

13 Typical Arrangements Staff AgencyHospital/Care Home Self-employed Doctor/Nurse/Auxillary Invoice incl m/up Invoice Past treatment: VAT exempt either as: 1.Services of a medical practitioner/registered nurse 2.Care in an approved institution 13

14 Is It Right? Staff AgencyNew housebuilder Self-employed Bricklayer Invoice incl m/up Invoice The supply from the agency to the new house builder is a supply of staff: VATable irrespective of the what work the bricklayer performs Instruction & Control 14

15 What Has Changed? University of Glasgow NHS trusts Consultants (Medical Lecturers) Invoice incl m/up Tribunal found that this was a taxable supply of staff!! Instruction & Control 15

16 The “Misdirection” Concession If a Customs and Excise officer, with the full facts before him, has given a clear and unequivocal ruling on VAT in writing or, knowing the full facts, has misled a registered person to his detriment, any assessment of VAT due will be based on the correct ruling from the date the error was brought to the registered person's attention. 16

17 The “Misunderstanding” Concession VAT undercharged by a registered trader on account of a bona fide misunderstanding may be remitted provided (a) the tax has not been knowingly evaded; (b) there is no evidence of negligence; (c) the misunderstanding does not concern an aspect of the tax clearly covered in the guidance published by Customs and (d) the tax due was not charged, could not now be expected to be charged to customers, and will not be charged. 17


Download ppt "Glyn Edwards AIIT VAT Consultant. Question: What makes lap-dancing clubs interesting? Answer:VAT!!!!! 2."

Similar presentations


Ads by Google