On 09/02/2011 18:18, tim.... wrote:
"Graeme wrote in message
...
On 09/02/2011 14:29, tim.... wrote:
wrote in message
...

wrote in message
...

wrote in message
...
wrote in message

If the flat management company wasn't VAT registered (because the
turnover's below the threshold), then no need to add VAT to the
clamping fee.

Actually the flat management company is unregistered because, as a
resident owned company, it is not allowed to register.

Why is that?

It's not a trading company.

I didn't think HMRC cared who the proprieter is. And, if not
registered, how could the company even pay money to HMRC?

It's registered at CoHouse and pays CT to HMRC, but it's not allowed to
register for VAT.

It pays money to HMRC for VAT in the same way that every other consumer
does.

Now I'm even more confused -- consumers don't pay VAT to HMRC. They pay
it
to a trader, who passes it on to HMRC. Consumers have no mechanism for
paying VAT directly to HMRC.

Yep, and tha's exactly how the MC paidm VAT to HMRC

I think what you're saying is that you paid VAT to the clamper, who must
have been VAT registered. Did you pay him for his services (which would
have been VATable), or did he get paid through collecting VAT-inclusive
charges from illegal parkers? Or, I wonder, did he illegally collect
"VAT" from you, and just pocket it?

I don't know how he accounted for it, but I understand that his MO was
that
he charged the clampee a "fine" and the business who hired him the VAT
element of that fine, which they would claim back from HMRC on their VAT
return.

Except than in our case we weren't registered and hence not able to claim
it
back.

No, I still don't know why he worked that way (or indeed, if it was
legally
correct).


Doesn't sound correct to me. Did he charge you a base fee for his
services?

No.

He came around for free, but whenever he extracted a fine from a
transgressor, we had to pay the VAT (so we were told)


That has to be a nonsense, if there is any VAT involved it is in the fee
(fine) charged to the errant motorist.

--
Graeme Wall
This account not read, substitute trains for rail.
Railway Miscellany at www.greywall.demon.co.uk/rail
Photo galleries at http://graeme-wall.fotopic.net