Both of these types of business are cash orientated. The scrap business is a licence to print money!! Cars which people cannot afford to repair a towed away for free. The dealer then allows people to salvage bits from these cars and takes cash payment. When the car is picked clean it is sold by weight to bigger scrap dealers. They, in turn, will pay cash for the loads. The seller may sign his name on a receipt as anything he wants too as it is his/her responsibility to pay the tax.!!!!
Expenses can be claimed for towing wagons,drivers, diesel, road tax and maintenance. Land is needed and must be kept secure. So fencing, guard dogs, vets bills, cctv cameras and so on are all tax deductible too. By piling cars on top of each other it is difficult to figure out how many there are on a site. Nobody can say for sure how many bits are on them when they come in to a yard as an owner may have taken bits off. It all depends which spare bits are most popular and in demand. radios and cd players are good sellers if they have been left in cars. But again no numbers are available. To inventory each car as it comes in would take time and staff and in any case forms would not be filled in.
The fast food game is a big fiddle. Again it is cash. The taxman. years ago tried to figure out how many meals could be made from a bag of rice!! Everybody fell about laughing at this one. how much rice goes into a carry out dish or onto a plate was the simple answer. A bag could split and fall on the floor ant would then be contaminated under hygiene rules. The easy way is to have two accounts with a supplier. One in the restaurant name and the other in the persons name.
Another joke the taxman tried was, how many chips could be fried, per stone of lard. It depends on the chunkiness of the chips how much lard is absorbed by the potato. Chunky chips take less lard. Some shops use oil. It also depends how long chips are fried for. Another joke was trying to figure out how many portions from a sack of potatoes. Do they start counting the chips????
The big game these days is delivery. The driver is self employed and gets a fee per order. The stuff to produce these orders is bought in the number two account with the supplier. So deliveries can be total profit.
Even proving that a firm delivers is no good as the accounts are not split. Accounts merely show total income.
The taxman is kidding themselves on with this adventure into dreamland.
No comments:
Post a Comment