"tim." wrote in message

"Neil Williams" wrote in message
.net...
On Mon, 07 Feb 2011 17:25:29 +0000, Sam Wilson
wrote:
In my brother's village there is a small, free car park. The
Parish
Council have to pay VAT on the notional value of the parking
service
they provide.

Never heard of that; I thought VAT was only charged on actual sales.

Does that happen anywhere else?

When my flat management company "hired" a small one man clamping
company, because we weren't VAT registered we had to pay the VAT due
on the "fines" collected (I could never work out why the person being
"fined" didn't have to pay it).

That seems very odd -- if the firm's turnover is not large enough to
have to register for VAT, it should not be charged and does not need to
be paid to HMRC. And if the one man's clamping company was registered
for VAT, he should be responsible for including it in the fines and
paying the money over to HMRC.