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20 minutes ago, Non-Believer said:

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Whilst I feel sorry for those who are owing and are behind in payments, I am sure there will be many that won’t feel sorry, and certainly won’t be taking a compassionate point of view. It’s not good when IOMG are obsessed with the VAT revenue sharing agreement, and obsess about what people spend their money on. 

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Wouldn't surprise me if some of these were due to recent high inflation.  The price of everything has gone up.  There will be firms that last year wouldn't have had turnover within the VAT threshold, but then turnover has increased this year and put them in.  However, they probably won't have been charging VAT on their fees and are now going to have to pay an additional 20% in tax. 

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1 minute ago, The Phantom said:

Wouldn't surprise me if some of these were due to recent high inflation.  The price of everything has gone up.  There will be firms that last year wouldn't have had turnover within the VAT threshold, but then turnover has increased this year and put them in.  However, they probably won't have been charging VAT on their fees and are now going to have to pay an additional 20% in tax. 

I read something on Facebook ages ago about MexiMann the van near the White Hoe and the VAT office clamped them for a load of backdated VAT because of similar issues.

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9 minutes ago, NoTailT said:

I read something on Facebook ages ago about MexiMann the van near the White Hoe and the VAT office clamped them for a load of backdated VAT because of similar issues.

That was Covid.  He did really well out of it as he's an outside van so a lot of restrictions didn't apply to him.  It was only the year after that he realised it had taken him over the threshold. 

It's easy to do, especially if you're not some sort of accounting savant.   It's actually pretty sketchy having a business that is floating around the magic number. 

I was chatting to him about it a while ago.  I think it was something like £20k he was going to have to find from somewhere.  He's got a donation bucket on his van to pay for it! 

Edited by The Phantom
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The figures are from the answer to a Written Question from Ashcroft released a few days ago:

https://www.tynwald.org.im/spfile?file=/business/BusinessHansardIndex2126/W-202301-0949.pdf

It's actually a really good comprehensive answer with all the terms explained.  I'd suggest you read it yourselves as there's a lot of information about the various types of debt involved, but one thing struck me.  As well as the £36.9 million of 'Actionable Debt' there is around £100 million of 'Non-actionable', much of which is explained here:

On-hold cases

As at 30/09/23 the value of on-hold cases was £80.01m; these cases are currently nonactionable and notably £65.6m (81%) of this amount concerns a single case that has been appealed by the business following a First-tier VAT Tribunal ruling. The appeal is expected to be heard in Spring 2024 and the further treatment of two other on-hold cases, with debts totalling £8.79m, will depend on the result of that appeal.

Though £13.7 million of the rest is from just 15 companies in insolvency.

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16 minutes ago, The Phantom said:

It's easy to do, especially if you're not some sort of accounting savant.   It's actually pretty sketchy having a business that is floating around the magic number.

VAT is a minefield and certainly HMRC are as unhelpful as possible if you have any questions. I feel very sorry for anyone who hovers around the threshold. The best advice is usually to pre-emptively register, but that adds overheads when things are tight.


I used to be a trustee of a charity and HMRC wouldn’t give us any help or guidance but, helpfully, said they’d go after us if we made a mistake. And that’s a charity for whom most VAT doesn’t apply. Professional advice we obtained wasn’t much more helpful- of course everything from a professional adviser has an arse-covering caveat.

But I imagine most of these companies have happily charged VAT to their customers but just haven’t paid it on. In which case I have zero sympathy.

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7 minutes ago, Ringy Rose said:

VAT is a minefield and certainly HMRC are as unhelpful as possible if you have any questions. I feel very sorry for anyone who hovers around the threshold. The best advice is usually to pre-emptively register, but that adds overheads when things are tight.


I used to be a trustee of a charity and HMRC wouldn’t give us any help or guidance but, helpfully, said they’d go after us if we made a mistake. And that’s a charity for whom most VAT doesn’t apply. Professional advice we obtained wasn’t much more helpful- of course everything from a professional adviser has an arse-covering caveat.

But I imagine most of these companies have happily charged VAT to their customers but just haven’t paid it on. In which case I have zero sympathy.

This is actually one case where the IOM is pretty good.  Our VAT guys are actually quite reasonable, helpful and fast compared to HMRC.  Contributing factor to the whole Private Jet thing.  

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2 hours ago, The Phantom said:

That was Covid.  He did really well out of it as he's an outside van so a lot of restrictions didn't apply to him.  It was only the year after that he realised it had taken him over the threshold. 

It's easy to do, especially if you're not some sort of accounting savant.   It's actually pretty sketchy having a business that is floating around the magic number. 

I was chatting to him about it a while ago.  I think it was something like £20k he was going to have to find from somewhere.  He's got a donation bucket on his van to pay for it! 

Donation bucket? did he share his profits with his customers then?

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