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Treacodactyl

Tax doesn't have to be... "absurdly complicated"

http://newsvote.bbc.co.uk/1/hi/business/7220949.stm

Quote:
The man who fronted adverts for HM Revenue and Customs (HMRC) with the slogan "Tax doesn't have to be taxing" says: "I wish tax was simpler".


Don't we all. Rolling Eyes
RichardW

I like the bit at the end where he says that he will be replaced by a younger newer face yeh I bet you will now you have bitten the hand that feeds you LOL

Justme
MarkS

But VAT isn't complicated.

I know the new flat rate schemes confuse things abit, but it isnt complex.

And a flat rate scheme for income tax is rather regressive. Now if he's suggesting a wealth tax thats a different matter.
RichardW

MarkS wrote:
But VAT isn't complicated.

I know the new flat rate schemes confuse things abit, but it isnt complex.

And a flat rate scheme for income tax is rather regressive. Now if he's suggesting a wealth tax thats a different matter.


You dont think? Perhapse not if your case is simple but once you start to try to follow / use all the different rules & allowances it does get interesting.

Justme
Treacodactyl

MarkS wrote:
But VAT isn't complicated.


When I ran a company collecting all the VAT receipts and noting down all the few pence of VAT was rather time consuming and really only worth doing out of principle.
vegplot

MarkS wrote:
But VAT isn't complicated.

I know the new flat rate schemes confuse things abit, but it isnt complex.

And a flat rate scheme for income tax is rather regressive. Now if he's suggesting a wealth tax thats a different matter.


No? VAT is a major worry for business, they act as unpaid tax collectors and the penalty for getting it wrong can be crippling. The VAT man issues frequent ammendents to what and what can't be VAT chargeable and at what level which businesses are obliged to be fully familiar with. There are many, many legal cases where the VAT man has been shown to be ambiguous in the way VAT is managed.
Penny

VAT isn't desperately complicated, it's just a bit soul destroying to give back all that money every quarter Sad
Rob R

Penny wrote:
VAT isn't desperately complicated, it's just a bit soul destroying to give back all that money every quarter Sad


Move into zero rated goods Wink we get the pleasure for your pain Smile

The revenue should stop banging on about how easy it is to do income tax online though- there systems can't cope as it is, and why do you have to buy extra software to do partnership stuff? Rolling Eyes It's not worth it for a lot of people.
RichardW

MarkS wrote:
But VAT isn't complicated.



Just noticed that you are on about VAT, the link & adverts are about TAX IE income tax, I agree in the main VAT is simple.

Justme
vegplot

Anyone dealt with VAT for overseas customers? If so, how do you find it. Simple or not so.
MarkS

Justme wrote:
MarkS wrote:
But VAT isn't complicated.



Just noticed that you are on about VAT, the link & adverts are about TAX IE income tax, I agree in the main VAT is simple.

Justme


The BBC wrote:
Mr Hart-Davis described VAT as "absurdly complicated".


I'd agree that the rest of the tax system is a mess and needs a total overhaul. Too many special rules for special interest groups. It needs a coherent system rather than the mishmash of tax/NI/CT/community charge etc etc
MarkS

vegplot wrote:
Anyone dealt with VAT for overseas customers? If so, how do you find it. Simple or not so.


I never had a problem with it, although the rules have changed since I packed in - trying to avoid carousel fraud etc. but I haven't kept up on the details.
Treacodactyl

MarkS wrote:
Too many special rules for special interest groups.


This report is for you then. http://news.bbc.co.uk/1/hi/business/7221824.stm

Quote:
Tax avoidance by corporations and individuals costs the exchequer £25bn a year, according to the TUC.

The trade union umbrella body said its research found that wealthy individuals had legally avoided £13bn while corporations had avoided £12bn.


Thing is many people avoid tax by using an ISA for example which seems perfectly reasonable to me. Confused
Rob R

vegplot wrote:
Anyone dealt with VAT for overseas customers? If so, how do you find it. Simple or not so.


Haven't even thought about it, they get booked down with all the others- is there anything I should do differently?
vegplot

Rob R wrote:
vegplot wrote:
Anyone dealt with VAT for overseas customers? If so, how do you find it. Simple or not so.


Haven't even thought about it, they get booked down with all the others- is there anything I should do differently?


I'm under the same impression you are. I will have to ask our accounts lady next time she's in the office.
Rob R

I got charged VAT from another EU country (would have to look it up to say which one) that was something like 13% - I take it they have differents bands on the continent.
RichardW

I thought the form had two entries for inputs & out puts to / from europe?

Justme
vegplot

I think Europe is treated differently to the rest of the world. He says, with a cold sweat starting.
judith

Justme wrote:
I thought the form had two entries for inputs & out puts to / from europe?


It does. If your EU customer has their own VAT number, you would not charge VAT to them in any case, so that box would be left blank.
It only gets complicated when you are dealing with individuals rather than businesses.
Rob R

judith wrote:
Justme wrote:
I thought the form had two entries for inputs & out puts to / from europe?


It does. If your EU customer has their own VAT number, you would not charge VAT to them in any case, so that box would be left blank.
It only gets complicated when you are dealing with individuals rather than businesses.


I was charged VAT by an EU business- does that mean they messed up? Not charging VAT registered businesses would seem a better system than we have over here.
judith

Rob R wrote:
I was charged VAT by an EU business- does that mean they messed up? Not charging VAT registered businesses would seem a better system than we have over here.


If they had your VAT no, preceded by the letters GB, then they should have shown it on your invoice and should not have charged you VAT.
(It's one of the good things that the EU has done for us!)
Rob R

This whole tax thing seems an awful lot of bother just to claim back the £8 of overpaid tax- they could have kept the money if I could have opted out Laughing
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