In message , at 11:56:16 on Sat, 25
May 2019, JNugent remarked:
On 24/05/2019 21:11, Roland Perry wrote:

JNugent remarked:

How Uber allocates their turnover is not relevant to the question of
what their turnover is.
It is if the main way they "allocate" the funds is by sending 75% to
the drivers (on a booking agency basis) and keeping 25% commission.

How?

They are still turning the money over, no matter how it is sliced up
after receipt.

It goes through their bank account. It is all part of the turnover.
That's what turnover *means*. They could pay the drivers 99% of the
turnover, but it's still turnover.

If you look at a company like TheTrainline, the turnover they quote is
just the commission from the Train Operators (and some fixed transaction
fees from customers) [in the region of £150 million], not the total of
all the fares people buy [in the region of £2 billion].

If it were otherwise, any small enterprise on the verge of the
compulsory VAT registration turnover quantum could, by sleight of hand,
deduct the amounts they are liable to pay out for wages (that's the
biggy), business rates, fuel duties and VAT, national insurance, etc,
and claim not to be turning over enough to be forced to register.

You are fatally confusing gross profit margin with turnover.

Any business which pays out more than it previously did in wages or
overheads reduces profitability, but turnover only vchanges if
turnover changes.
The only overhead that the Uber that's paying 75% to drivers (and
the drivers paying all their costs like renting and insuring
vehicles, paying themselves a wage etc) has, is running its booking
platform.

The amount of their overheads isn't important. The principle *is*.

If they want to avoid VAT liability on turnover, they need to let the
drivers collect the fares (like a real private hire operation) and
avoid making it part of their revenue.

I don't think credit card companies include the total value of things
purchased with their cards in their turnover. But they do collect the
money from buyers, deduct a commission, they pay the balance to
vendors. And like no doubt Uber, they don't pay the whole amount out and
then send an invoice asking for the commission back whenever the trader
feels like it.
--
Roland Perry