Garage charges, no VAT?
I need to know if i am at risk of prosecution, for months now i have been having my car serviced and repaired at a local Garage. The Proprietor accepts cash in hand to avoid paying VAT, does that legally make me an accessory to avoiding VAT, or is it solely his responsibility for paying VAT, and although i know its happening and consequently cheaper for me and other people, can we too be prosecuted for him not charging VAT?
Comments
Not your problem. For all you know he could be under the VAT threshold of 77k.
UK
Vat Registered Garage
Tricky one! Just because you pay by cash is not in itself illegal. But if he tells you it is cash so he needn't pay VAT then you are helping him to evade tax, which must be an offence. You really should have an invoice for proof of payment, guarantee of work etc. Maybe he isn't VAT registered (if his turnover is less than £77000) so if a small garage srvicing 1 or 2 cars a week maybe he is not at this threshold. If you are retail then you would normally expect a businesses charge/bill to be inclusive of VAT so I don't think you could be prosecuted. It is an ethical/moral thing really. If you don't believe in tax evasion then go someehere else or insist on a receipt (with or without VAT)
If you pay cash you have settled the bill for the job you hired the garage to do.
Whether he includes that sum in his takings is not your problem.
It could be a problem if the garage owner claimed you did not pay him as you don't have a receipt to prove you did.
Paying in cash is not fraudulent. Colluding with him to evade tax potentially is. Though the majority of the burden will be on his shoulders.