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  • FIRST POST
    • GorgeousG
    • By GorgeousG 15th Sep 18, 3:13 PM
    • 3Posts
    • 0Thanks
    GorgeousG
    VAT claim
    • #1
    • 15th Sep 18, 3:13 PM
    VAT claim 15th Sep 18 at 3:13 PM
    Hi
    Can someone help us, my partner is a self employed courier and has been "employed" with the same company for over 10 years. Recently it was announced that a whistleblower had found out that when they charged a customer VAT, 10% should go to the courier and the company keeps the rest, however, the company hasn't been doing this and none of the couriers have been receiving the VAT amount. My partner was contacted by a firm who said they are going through all the couriers and getting this payment back dated. They said they could only go back 4-5 years.which resulted in most couriers getting around 4,000 which you can imagine is a lot of money. Anyway they looked into my partners and said that he is only entitled to money backdated to February of this year!!!! They said as my partner left inbetween Sept 2017 until Feb 2018, he is not entitled to the backdated money which you can imagine has infurated my partner especially for the amount of time he has been with the company.

    My partner did not leave but took time out due to a back injury, the company who are robbing so and so's kept billing him for clothes and an app so his manager closed his driver number!! Meaning he was not employed by the company during this time. However, my partner is self employed so never "left" as he was never employed in the first place! Surely he is entitled to the 4 years as this was not the companies to keep!?

    Can anyone advise as we really are at a loss to this. Apparently they are on a flat rate whatever that means.

    Anyone else in a similar situation, we are thinking of getting legal advice but don't want to waste little money we have if it is not worth it.

    Thanks and sorry for the essay!
Page 1
    • Sunny Intervals
    • By Sunny Intervals 15th Sep 18, 4:17 PM
    • 208 Posts
    • 654 Thanks
    Sunny Intervals
    • #2
    • 15th Sep 18, 4:17 PM
    • #2
    • 15th Sep 18, 4:17 PM
    This doesn't sound like a benefits issue. It might be worth messaging a board guide and asking them to move this to the Employment board.
    • McKneff
    • By McKneff 15th Sep 18, 4:28 PM
    • 36,132 Posts
    • 46,582 Thanks
    McKneff
    • #3
    • 15th Sep 18, 4:28 PM
    • #3
    • 15th Sep 18, 4:28 PM
    I am puzzled. If a customer is charged vat, the whole of the vat should go to the tax man.
    Why would the courier get any. WHO HAS BEEN 'looking into it'
    It all sounds a bit dodgy
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
    • gettingtheresometime
    • By gettingtheresometime 15th Sep 18, 5:06 PM
    • 4,002 Posts
    • 10,126 Thanks
    gettingtheresometime
    • #4
    • 15th Sep 18, 5:06 PM
    • #4
    • 15th Sep 18, 5:06 PM
    I am puzzled. If a customer is charged vat, the whole of the vat should go to the tax man.
    Why would the courier get any. WHO HAS BEEN 'looking into it'
    It all sounds a bit dodgy
    Originally posted by McKneff


    HMRC use companies as a cheap/easy way of collecting VAT so why would self employed couriers get to keep any amount of VAT?

    I agree with McKneff - it sounds totally dodgy OP
    Lloyds OD / Natwest OD / PO CC / Wescott / Argos Card cleared thanks to the 1 debt v 100 day challenge


    Next on the list - JD Williams
    • Caz3121
    • By Caz3121 15th Sep 18, 5:50 PM
    • 11,436 Posts
    • 7,489 Thanks
    Caz3121
    • #5
    • 15th Sep 18, 5:50 PM
    • #5
    • 15th Sep 18, 5:50 PM
    Hi
    when they charged a customer VAT, 10% should go to the courier and the company keeps the rest, however, the company hasn't been doing this and none of the couriers have been receiving the VAT amount.
    Originally posted by GorgeousG
    I expect you will get asked for some money upfront at some point as this sounds dodgy.
    If the company is VAT registered they will indeed charge their customers VAT. This VAT amount will be due to be paid to the tax man.
    If your husband is VAT registered then he would have included VAT on his invoice to the company and they could offset against their VAT bill he would be required to pass that on to the tax man in his returns. Nobody keeps the VAT

    as an aside I would question the IR35 position and wouldn't be surprised if that is investigated unless he was working for other companies as well. The 'employer' calls people self employed to get out of paying NI, holiday pay etc
    • antrobus
    • By antrobus 15th Sep 18, 6:17 PM
    • 16,013 Posts
    • 22,842 Thanks
    antrobus
    • #6
    • 15th Sep 18, 6:17 PM
    • #6
    • 15th Sep 18, 6:17 PM
    Hi
    Can someone help us, my partner is a self employed courier and has been "employed" with the same company for over 10 years. Recently it was announced that a whistleblower had found out that when they charged a customer VAT, 10% should go to the courier and the company keeps the rest, however, the company hasn't been doing this and none of the couriers have been receiving the VAT amount. My partner was contacted by a firm who said they are going through all the couriers and getting this payment back dated. They said they could only go back 4-5 years.which resulted in most couriers getting around 4,000 which you can imagine is a lot of money. Anyway they looked into my partners and said that he is only entitled to money backdated to February of this year!!!! They said as my partner left inbetween Sept 2017 until Feb 2018, he is not entitled to the backdated money which you can imagine has infurated my partner especially for the amount of time he has been with the company.

    My partner did not leave but took time out due to a back injury, the company who are robbing so and so's kept billing him for clothes and an app so his manager closed his driver number!! Meaning he was not employed by the company during this time. However, my partner is self employed so never "left" as he was never employed in the first place! Surely he is entitled to the 4 years as this was not the companies to keep!?

    Can anyone advise as we really are at a loss to this. Apparently they are on a flat rate whatever that means.

    Anyone else in a similar situation, we are thinking of getting legal advice but don't want to waste little money we have if it is not worth it.

    Thanks and sorry for the essay!
    Originally posted by GorgeousG
    I suspect that the following applies;

    the VAT rate for courier services under the flat rate scheme is 10%

    some courier companies have opted for the flat rate scheme but used the standard rate of VAT at 20% when accounting for their self employed couriers

    as in, customer is charged 12 less 2 VAT, we owe you 10 less our cut, when it should have been 12 less 1.09 VAT we owe you 10.91 less our cut

    I am guessing mind you.
    Last edited by antrobus; 15-09-2018 at 6:19 PM.
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