Cash or invoice for conservatory.........

[EddieM]

personally I avoid as much tax as possible, who wouldn't ?

 

[freddiemercurystwin]

Cos it could reflect badly on his wife's job if it ever came to light, albeit unlikely. That seems to be the crux of the thread not the morality of avoiding paying tax or not.

 

[kjacko]

But if HMRC can prove collusion between customer and supplier; ie. the customer knew they were getting a discount by paying cash because the supplier could then avoid paying tax, then both are up investigation.

I've surrendered and as the mrs works for HMRC its too risky, so we're gonna have to stump up extra now i guess.

 

[EddieM]

But if HMRC can prove collusion between customer and supplier; ie. the customer knew they were getting a discount by paying cash because the supplier could then avoid paying tax, then both are up investigation.

I've surrendered and as the mrs works for HMRC its too risky, so we're gonna have to stump up extra now i guess.

I wouldn't worry too much about it the HMRC couldn't organise a p**s up in a brewery. They *may* try to tap you in 2412.

 

[joe-90]

I always offer a cash price - and an inflated price.

If I offer a price of £3200 for work or a cash price of £2600, then the customer thinks they are getting £3200 worth of work for £2600.

£2600 was always the price of the job. If they choose to go for the higher price more fool them - I'm still quids in.

In marketing jargon it's called 'perceived value'.

If someone else quotes against me at £2600 - the customer thinks they are getting £2600 worth of work - so no bargain.

It works - try it.

 

[kjacko]

What's wrong with just doing a good job for a suitablly acceptable profit?
Your so-called marketing ploy is really a scam, preying on the uneducated.
I'm an I.T. Manager and I.T. is probably one industry that a lot of people are almost scared of. I hate PC World with a passion as i've seen people being ripped off so blatantly its sickening. I've even intervened and corrected a sales person who nearly persuaded a couple to part with much more money than they ever needed to.
People should be able to expect good honest advice (and quotes), and not the constant upsell to more expensive works/products simply because they don't know any better.
Labour + materials + % for profit = acceptable quote

 

[joe-90]

Call it a scam if you like, then again all marketing is.

Shops like Tesco put their lines in the shop hidden away at an inflated price and then after a certain time they can say 50% 0ff sale - grab a bargain!

Marketing is a scam. It's all down to the 'perceived value'.

 

[pred]

Avoiding tax is stealing from everybody else.

Sitting on your backside claiming dole year after year is also theft.

 

[pred]

Call it a scam if you like, then again all marketing is.

Shops like Tesco put their lines in the shop hidden away at an inflated price and then after a certain time they can say 50% 0ff sale - grab a bargain!

Marketing is a scam. It's all down to the 'perceived value'.

I hate to say this but i actually agree with you on this one Joe.

 

[alumni]

Call it a scam if you like, then again all marketing is.

Shops like Tesco put their lines in the shop hidden away at an inflated price and then after a certain time they can say 50% 0ff sale - grab a bargain!

Marketing is a scam. It's all down to the 'perceived value'.

I hate to say this but i actually agree with you on this one Joe.

Hardly a trade secret though is it.

Some chains use that as their own marketing/sales argument to win sales from the bigger boys.

 

[misterdubya]

I just put everything through the books. That way I can sleep at night. I pay on what I earn, which does give me the right to complain about tax issues. I can liken it to voting.... if you dont bother, how can you complain about who gets voted in?

Even my Business Bank Manager did wonder why I did it! How scary is that?

The tax man can visit this gas man anytime.

 

[joe-90]

I was simply explaining that an apparent tax dodge may not be a tax dodge at all, but a marketing ploy. Hence he should go with the cheaper price and let the contractor sort out his own tax affairs. It's got nothing whatsoever to do with the customer.

 

[misterdubya]

I was simply explaining that an apparent tax dodge may not be a tax dodge at all, but a marketing ploy. Hence he should go with the cheaper price and let the contractor sort out his own tax affairs. It's got nothing whatsoever to do with the customer.

On that I agree Joe, even when the customer says "you dont have to charge the VAT do you"

I say "no, I can omit that, on the pure fact Im not VAT registered so I could not charge VAT anyway, so gimme the agreed cash price". Most custards are idiots and still think they have a discount. "Just give a receipt with no VAT". So, get the dosh and declare it, minus the VAT (that the custard thinks I should have charged) that I could not charge in the first place. Simples.

 

[kjacko]

I was simply explaining that an apparent tax dodge may not be a tax dodge at all, but a marketing ploy. Hence he should go with the cheaper price and let the contractor sort out his own tax affairs. It's got nothing whatsoever to do with the customer.

Not quite true though Joe, HMRC (however inept some people think they are) are proactive on clamping down on plumbers, sparkies and builders right now, and if the customer cannot provide receipts for works done then HMRC will claim collusion between the customer and the tradesman with a view to reducing the costs by avoiding paying tax.
Basically if the customer knows he's getting a cheaper deal because it won't go through the tradesmans books, and thus not declaring it for tax deduction, then the customer is guilty too.

I had to eat humble pie on this as i argued with my mrs till i was blue in the face, saying basically what you and others in here have said, that "what he does with his payment is not our business, we cannot force him to pay his taxes!"

But the 'collusion' factor is a problem we face, so now we're going the legit route and having full vat receipts from all parties involved in building our conservatory.

 

[joe-90]

But in my case I will give you the 'cash price' to make you say 'yes'. I still put it through the books though. Where is the collusion there? Until payment by cash is outlawed - then it is totally legal.

Or another scenario could be that you set up a computer system for your brother in law - and he (if he is a mechanic) fixes your car.

Do you 'bill' each other or fiddle the tax?