Uber is saying if youre near 80k in on year you have to pay the VAT.
But those 80k is the gross fare, so they take 25% from those 80k and then they are saying i have to pay another 20% vat from those 80k or the remaining of 60k?
£80,000 gross fare
£20,000 uber commission 25%
£60,000 remaining before VAT
£16,000 VAT tax
£44,000 after VAT
Now lets cut the costs of working for Uber from the remaining £44,000:
Car rent/lease/finance - from £4000 to £8000 , depending of the car
Fuel - from £5000 to £7000
Insurance - Minimum £2000
Car maintenance - minimum £2000 if you're lucky not to have major work done
TOTAL=minimum £15,000
£44,000 minus the costs of being able to work= £29,000
AND now lets talk talk about the other TAX like NIN and profit TAX which can be another another 20% or a minimum of 10% right? and again your earning will drop
This is around £2400/month your real income!! but bare in mind how many hours you have to work to make those 80k
What a trap, i feel sorry for those who have to pay VAT, is better to work less and not pay VAT
I am sure you can avoid VAT tax using different companies but still.....
SO guys, don't work too much, if you re getting close to £80,000 get ready to register some LTD
ANything below £70,000 , continue what are you doing