Indepemdent Schools Set To Cash In On...
News1 min ago
This could cost the government billions
No best answer has yet been selected by webbo3. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.I don't know why there is surprise.
VAT is (near enough) only paid by end users. All the organisations in between reclaim almost all the VAT they have paid. It makes for horrendously expensive administration for those businesses and a lucrative source of employment for HMRC in the form of Vat-men and women.
It is an horrendously complex form of taxation which could not be much more unwieldy if you tried.
I must say I am surprised that VAT can be reclaimed on capital expenditure going back so far. But thinking about it, if writing down capital assets (for which they have already paid, including VAT)is going to influence organisations' bottom line in the future, it seems only fair they should be able to reclaim the tax paid because I imagine they will not be able to write down those sums when they are VAT registered.
Hopefully they will make a few bob out of the exercise and that will help them offset the cost of being unpaid tax collectors for the government, as well as funding the extra scribes they will need to administer this most ridiculous tax.
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