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The UK government's Low Value Purchase System is a waste of time

shkspr.mobi

51–60 of 108 posts

Re: The UK government's Low Value Purchase System is a waste of time

#51
post #43

Earlier quoted context omitted.

tariffs wouldn't capture anything locally produced.

Aren't local profits taxed?

profits are taxed, but VAT captures turnover or revenue, not profits, otherwise if everyone spends all their profits there would be nothing left to tax.

Re: The UK government's Low Value Purchase System is a waste of time

#52

My spouse did business at a collector show in Illinois years ago. We filed some sales tax thing, as we collected sales tax (as we were told to do) and remitted it. Did that for... 2 years, IIRC, then didn't do that show again. We got letters threatening that we would be penalized if we didn't fill out the form and remit our collected tax. There was no option to say 'nothing'. I mean... we did one year - put 0. Then w…

Huh, in my state the secretary of state is where you register a business, and you just go to the website and click "this is no longer operating" and then they stop sending you letters to file your 0 taxes.

You’re making a fascinating assumption that the tax authorities’ systems are at all integrated with the Secretary of State systems.

Re: The UK government's Low Value Purchase System is a waste of time

#53

My spouse did business at a collector show in Illinois years ago. We filed some sales tax thing, as we collected sales tax (as we were told to do) and remitted it. Did that for... 2 years, IIRC, then didn't do that show again. We got letters threatening that we would be penalized if we didn't fill out the form and remit our collected tax. There was no option to say 'nothing'. I mean... we did one year - put 0. Then w…

Illinois online forms are egregiously bad. A couple examples off the top of my head:

I was traveling through the state and got on a toll road by accident without cash to pay the tolls, the toll booth employee said I could just pay online, pointing to a sign that said "missed a toll? pay online at ", so we continued our trip intending to pay the tolls online. At the end of the trip, I logged on to pay our tolls--the application insisted that we enter the specific toll IDs of each toll that we missed, even though we didn't know we were supposed to be recording any toll IDs. If you didn't know the toll IDs, you could use a map application to look up the toll IDs, but the map application would crash within a second of opening it and even if you managed to get a screenshot the resolution was so low that the text was indecipherable. When I called the support number, they told me that I would be fined triple the cost of the tolls if I didn't pay within a week, but I would be able to pay without knowing the specific toll IDs that I missed. When I asked the agent to tell me what tolls I missed (clearly they knew if they were going to fine me), they told me they couldn't tell me for another week. I pointed out that this would be after the toll deadline and they relentlessly tried to avoid acknowledging that simple fact. Eventually I sent them my best guess about what I owed with a letter stating what I had attempted and that I would contact a lawyer about any fines and never heard from them again.

Some years later, after moving to Chicago, I had to file state taxes for the first time. The state issued me a driver's license with a 12 digit number, but the state tax form only allowed me to authenticate with an 8 digit Illinois driver's license number (the other acceptable forms of identification didn't apply to me for reasons I no longer remember).

Re: The UK government's Low Value Purchase System is a waste of time

#54
post #29

So much UK govt bureaucracy could be removed. Like tax returns - they have the data already, just send me a bill, and let me query it if I disagree (like it works in other European countries). Or Making Tax Digital, which incredibly is worse than the previous system. Or VAT registration/returns which my partner has to do, which overlap with MTD and acts like a kind of second tax system.

I mean, 90% of employees on the UK(I imagine it's probably 99%) don't ever have to file any taxes - it's all done automatically through PAYE. Only in certain specific circumstances you need to file a self assessment. So yes, I sympathise with the administrative burden for UK businesses, but for employees the system is basically better than almost anywhere else in the world.

Re: The UK government's Low Value Purchase System is a waste of time

#55
I get that the tax man needs to be paid, but what possible justification could there be for

1. demanding for this data monthly, rather than quarterly or yearly; and

2. demanding it via an annoying bespoke process rather than as an entry in the business's regular tax filing or some other pre-existing regular paperwork that small businesses are already submitting?

Re: The UK government's Low Value Purchase System is a waste of time

#56

"The system is working as intended". I once attended an official seminar given by the government procurement department, to an audience of (mostly) government department people with purchase authority. The subject of which was how to construct your invitations to tender such that only the largest 3-4 suppliers could possibly respond. "Solves the problem of having to consider 20-30 suppliers and review their submissio…

Approaching 20yr ago now I sat through a training on the state automotive inspection license for reasons have to do with software that ran it.

Slide 1ish: State cares about emissions, take it very seriously if you want to keep your license.

Slide 2ish: State gives no fucks either way about "safety" inspections, they don't affect squat and aren't worth the money so far as our studies and stats can tell

Slide 3ish: If it wasn't obvious, "safety" is your blank check to sell work and in return the state expects you to take emissions seriously.

The rest of the slides were technicalities and requirements and the final slide was a recap of 1-3.

I too am glad I was exposed to such things early on.

Re: The UK government's Low Value Purchase System is a waste of time

#57
post #52

Earlier quoted context omitted.

Huh, in my state the secretary of state is where you register a business, and you just go to the website and click "this is no longer operating" and then they stop sending you letters to file your 0 taxes.

You’re making a fascinating assumption that the tax authorities’ systems are at all integrated with the Secretary of State systems.

You'd only think that if you misunderstood "in my state" to mean "in all states"

Re: The UK government's Low Value Purchase System is a waste of time

#58

My spouse did business at a collector show in Illinois years ago. We filed some sales tax thing, as we collected sales tax (as we were told to do) and remitted it. Did that for... 2 years, IIRC, then didn't do that show again. We got letters threatening that we would be penalized if we didn't fill out the form and remit our collected tax. There was no option to say 'nothing'. I mean... we did one year - put 0. Then w…

2 years? California chased one guy for taxes for 3 decades.

https://en.wikipedia.org/wiki/Franchise_Tax_Board_of_Califor...

Re: The UK government's Low Value Purchase System is a waste of time

#59

My spouse did business at a collector show in Illinois years ago. We filed some sales tax thing, as we collected sales tax (as we were told to do) and remitted it. Did that for... 2 years, IIRC, then didn't do that show again. We got letters threatening that we would be penalized if we didn't fill out the form and remit our collected tax. There was no option to say 'nothing'. I mean... we did one year - put 0. Then w…

Why would they ever fix the system. Some number of people will just pay it and those people are pure profit. Heck, fixing the system costs money. It's the same evil math behind every other billing scam that sails under the flag of ignorance. Speaking of ignorance, to all those people saying you forgot to fill out a form, there are several states that are known to be maliciously sloppy about this sort of thing. You fi…

>Why would they ever fix the system. Some number of people will just pay it and those people are pure profit. Heck, fixing the system costs money.

The system is run by employees of whatever agency handles taxes. Neither the employees nor the agency keep a portion of the taxes. If they do not have the money or will to fix it, people are supposed to pressure their representatives to give them the money and mandate.

If this truly came down to an intent to squeeze more money out of people than they owed, that would almost always come from the law's wording. Again, pressure the representatives.

The only times an agency would squeeze money is when it's funded in large part by fines or fees, or if an employee is committing fraud and pocketing some of the money.

Re: The UK government's Low Value Purchase System is a waste of time

#60

I get that the tax man needs to be paid, but what possible justification could there be for 1. demanding for this data monthly, rather than quarterly or yearly; and 2. demanding it via an annoying bespoke process rather than as an entry in the business's regular tax filing or some other pre-existing regular paperwork that small businesses are already submitting?

This doesn't look like anything to do with tax. You would definitely need to cover it in the normal tax return in addition to this.
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