Jump to content

Licence includes 20% VAT


Jennifer McM

Featured Posts

Sorry if this has been debated here before - I have had a little search but can't find a post relevant.

 

We've just renewed our licence, being continuous cruisers we view our licence as our 'rates', paying for water, rubbish collection, etc. (I know the licence pays for more than that). 

 

Do people pay 20% VAT on their 'rates', including water rates?

 

Then again, if through our licence we're paying a 'charity', i.e. C&RT, maybe our contributions should be tax allowable?

 

This is from C&RT's website

Quote

Licences begin on the first day of the month. Prices include VAT at 20%. The Licence is a legally binding contract, subject to the Terms and Conditions contained in this document

Just thinking.....!

 

Link to comment
Share on other sites

The two are in no way related. Rates or the modern term council tax are to do with property or on occasion residential status moorings for instance but a boat is a completely different animal. I dont expect non boat owners to pay for a boat licence for a boat they dont own and I dont expect to pay council tax for a property I dont own. I once years ago approached Leicester city council to pay council tax whilst there on my boat and they didnt want to know innitt. Now as for VAT mmmmmmmmm thats a good one innitt.

Link to comment
Share on other sites

I think that in order to be charged Value Added Tax, there should be easily quantifiable evidence that there is added value in what you have just purchased.

A bit like questioning why your car needs an MOT test to prove it's roadworthy when the state of the roads is far from car worthy.

  • Greenie 1
  • Haha 1
Link to comment
Share on other sites

Businesses pay rates, householders pay Council Tax. Both are taxes. Boat owners pay for a licence, which is a service - the right to use canals and rivers and associated facilities. As such the licence is subject to VAT. If you are buying a boat licence in the course of business you may be able to reclaim the VAT. Otherwise not.

Link to comment
Share on other sites

Hang on, just because you havent got a home mooring you think CRT should pay your share  of the council tax out of the licence. What about the rest of us that have a home mooring and pay a licence and if we live in a house also pay Council Tax, I take it you expect the police to keep law and order or the fire brigade to turn up if your boat catches fire and now you want to pay less tax as well

Link to comment
Share on other sites

Just now, ditchcrawler said:

Hang on, just because you havent got a home mooring you think CRT should pay your share  of the council tax out of the licence. What about the rest of us that have a home mooring and pay a licence and if we live in a house also pay Council Tax, I take it you expect the police to keep law and order or the fire brigade to turn up if your boat catches fire and now you want to pay less tax as well

Crumbs... don't expect anyone to pay my share, thank you very much. It was a debatable question, not a moan. Essential services perhaps shouldn't have VAT added, such as water rates, for anyone, whether they live in a house, boat or anything else. Apologies, I obviously hit a nerve.

  • Greenie 2
Link to comment
Share on other sites

13 minutes ago, Jennifer McM said:

Crumbs... don't expect anyone to pay my share, thank you very much. It was a debatable question, not a moan. Essential services perhaps shouldn't have VAT added, such as water rates, for anyone, whether they live in a house, boat or anything else. Apologies, I obviously hit a nerve.

The problem is you are equating living in a boat to living in a house. In the eyes of the law these things are totally different. Your situation is exactly the same as someone who decides to live in a caravan in a caravan park. You have to pay to live there, the park owner has to charge VAT (if he is VAT registered) on what you pay him. End of. You are paying a private entity to use their factilies, just as if you were paying to stay in a hotel, paying to hire a car, paying to go on holiday etc.

 

If you owned your own canal, you could live there without having to pay for the service - you would just have to pay rates on the property which would be VAT free. But unfortunately you don’t own your own canal!

Link to comment
Share on other sites

2 minutes ago, nicknorman said:

The problem is you are equating living in a boat to living in a house. In the eyes of the law these things are totally different. Your situation is exactly the same as someone who decides to live in a caravan in a caravan park. You have to pay to live there, the park owner has to charge VAT (if he is VAT registered) on what you pay him. End of. You are paying a private entity to use their factilies, just as if you were paying to stay in a hotel, paying to hire a car, paying to go on holiday etc.

 

If you owned your own canal, you could live there without having to pay for the service - you would just have to pay rates on the property which would be VAT free. But unfortunately you don’t own your own canal!

I guess I am Nick. It's always good to question. 

Link to comment
Share on other sites

On the subject of 'water'.

 

We are on a water meter, and up until; a few years ago we were charged VAT on our water bills - then we received a letter informing us that a mistake had been made and in fact it had been determined that it was illegal to charge VAT on water.

I don't remember the reason.

 

A refund of VAT (going back a shortish period) was offered.

 

All subsequent bills have been 'VAT Free'. The bill doesn't actually state if water is VAT Exempt, or just Zero rated.

 

Water Bill.jpg

Edited by Alan de Enfield
Link to comment
Share on other sites

It's like children's clothes, food (remember the paste tax), all essentials IMO shouldn't carry VAT - water being one of them. Don't know if you're as 'old' as me Alan, but I can remember a time when we didn't pay any water rates. Thanks for the link, I'll have a read :)

Link to comment
Share on other sites

3 minutes ago, Jennifer McM said:

Don't know if you're as 'old' as me Alan, but I can remember a time when we didn't pay any water rates.

I cannot comment - we have never lived in a 'normal' urban environment, living out in the country with our nearest neighbours 'a mile away'

Certainly, for the last 50 years (since 1968) I recall that we have paid for our water based on consumption (a meter) and having a cesspit and no connection for surface water run-off to the 'drains' we never paid  'water rates' if such a thing existed then.

Link to comment
Share on other sites

1 hour ago, zenataomm said:

 

A bit like questioning why your car needs an MOT test to prove it's roadworthy when the state of the roads is far from car worthy.

Very droll, have a greeno.

Link to comment
Share on other sites

15 minutes ago, Jennifer McM said:

It's like children's clothes, food (remember the paste tax), all essentials IMO shouldn't carry VAT - water being one of them. Don't know if you're as 'old' as me Alan, but I can remember a time when we didn't pay any water rates. Thanks for the link, I'll have a read :)

You say “IMO” and that’s fair enough, you are entitled to your opinion. But be careful not to sound like someone who thinks that “they” should pay for services like educations, health care, police etc. without considering who “they” might be.

These are essential services and so have to be paid for out of taxation. I can see no reason why “essential” items shouldn’t be taxed to pay for “essential” services. No-one likes taxes, but unfortunately they are a necessity. If you taxed only non-essential things, folk could just decide not to buy them (since they are non-essential) and then how would public services be funded?

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.