A small dilemma has presented itself to me.
My car is currently in the body shop having some paint tidied up. The company doing the work are a well established local company and I have used them once before, and other members of my family have also used them.
When I took the car round last week for a quote the chap told me it would be £450 for cash or if I wanted to pay by card or cheque I'd have to add 20% for the VAT.
So, firstly is this legit? The guy has been running his business like this for years and I find it odd that he's never been caught if he's not declaring cash through his books but he always says it's an option.
Is he fiddling cash through his books or have I misunderstood how VAT works?
Secondly, if I pay cash I won't receive an invoice or receipt for the work he's done and thus no warranty. If I need that down the line then I'm stuffed.
While I don't wish to pay more than necessary the old adage "buy cheap, buy twice" seems to be constantly at the base of my skull. Also as I'm a conscientious kind of person I worry that if I agree to pay cash then I'm complicit in his book fiddling, if that's what he is actually doing.
There is no 'H' in Aych, you know that don't you? ~ Wife
Turns out there is an H in Haych! ~ Sporky
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There is no 'H' in Aych, you know that don't you? ~ Wife
Turns out there is an H in Haych! ~ Sporky
Bit of trading feedback here.
I've certainly got no moral issues with
Manchester based original indie band Random White:
https://www.facebook.com/RandomWhite
https://twitter.com/randomwhite1
It's a fairly common practice though, especially among builders. My mate had some work done on his house once and the builder offered him the cash/no Vat deal. That rapidly changed when he found out my mate was a tax inspector.
"You don't know what you've got till the whole thing's gone. The days are dark and the road is long."
So unless you see this guy loitering when you give him the money:
...Mr Taxman is going to have a very hard time proving that anybody did anything wrong.
Don't talk politics and don't throw stones. Your royal highnesses.
Italy's worse...! I was even given the option on our hotel stay back in April.
Whilst the government are letting large corporations get away with tax evasion on a massive scale, whilst MP's are are receiving large dividends from portfolios they shouldn't have, whilst billions is being evaded in inheritance tax by the super rich I wouldn't worry too much about the back street garage. Personally I think it would be better to save the 20% and give it direct to the poor and homeless the government completely neglect if morality is a consideration. Whilst folks like Sir Philip Green and the Duke of Wesminster cream off billions with little goverment intervention I wouldn't worry too much about getting a cheap spray job. The people who should lead by example are the worst in society.
That's just me though, the super rich (and not so super) have many opportunities to play the system to legally avoid tax (ways which are not open to the man on the street) so they don't really need to take advantage of the illegal methods.
Manchester based original indie band Random White:
https://www.facebook.com/RandomWhite
https://twitter.com/randomwhite1
That's something else that worries me too. If he believes I'm paying cash and knows it won't go through the books then is he going to be as inclined not to cut corners and make sure his work is as professional as if everything was legit?
I think I've made up my mind to pay by credit card, insist on an invoice and be a fussy bugger if I think he's done a 'make do' job.
There is no 'H' in Aych, you know that don't you? ~ Wife
Turns out there is an H in Haych! ~ Sporky
Bit of trading feedback here.
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From the angle of the quality of their work, I'd perhaps have a look at some cars they have recently finished. Supposed it also depends on the car, if it's a 15 year old Fiesta I'd be less inclined to pay as much as a 3 year old Audi. The VAT side of things should not have much of a bearing on the quality of their work. I've been to a back street garage that tidies up cars and their job is just OK. I also know of a guy who sprays bikes from his garage and his work is factory quality.
As it is, only the people who own their own business can afford to evade tax whilst employed people will always be fully taxed.
"You don't know what you've got till the whole thing's gone. The days are dark and the road is long."
that said as a regular customer and referring customer he might just be trying to help you out abit.
if he has had any form of inspection they have a pretty good system of industry benchmark to compare stuff like materials paint number of employees v labour on jobs etc etc etc so if he falls out of that range they dig deeper.
i
The nature of the current tax system encourages the avoidance mentality when a company like Starbucks pays less tax than my little company.
Sucessive governments turn a blind eye and listen to all the bollocks about how many people our 600 power brand branches employee and if Starbucks et al pulled out of the U.K. Think of the effect on the unemployment numbers. This iconversation is usually accompanied by the blue print of our massive expansion program to double our branches in the next 3 years, so civil servant goes away with a warm fuzzy feeling that he is helping to save jobs and grow new ones in the future.
Ultimately all all the loopholes and special concessions could be done away with at a single stroke of the pen.
with the simple line no allowances no concession for anyone .
would Starbucks and others walk away from a whole countries worth of sales would the sad people who can't start the day without their Starbucks ( such is the crazy brand loyalty) riot in the street because the Goverment said no concessions for anyone. I very much doubt it and far fewer people would offer cash deals.
i for one do not believe in Vat its a tax and administration burden placed on the shoulders of business as it is political suicide to set income tax at a starting rate of 40/50%
i believe in a clear transparent tax no concessions and no Vat. I also belive Ni contributions should be clearly identified as health care and pension, benefits and not shuffled around Whitehall department and bid or argued for.
dont get me started lol
Abiding by the rules should always come from the top down, and until it does, I'll try and save myself (and help others) a few quid here and there.
Manchester based original indie band Random White:
https://www.facebook.com/RandomWhite
https://twitter.com/randomwhite1
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