[darkbrowneggs]

.... on all its medicines and probably everything else for all I know


Where on earth is the sense in that. 


How many accountants does it take to sort it all ou and what does that cost?.


Sometimes I think the Civil Service is manned by nit-wits ....... maybe make that all the time !!!!!

[happygolucky]

never gave it a thought before....robbing Peter to pay ail then give back to Peter....stupid

[Womble]

That's a tricky one. The alternative would be for companies to sell bandages / chairs / beds to private individuals and other companies and charge VAT, but then not charge VAT if the customer was the NHS, which is even more complicated IMHO.

The wasteful thing is just how many times VAT is charged and reclaimed on all sorts of goods. Think about it - wood company makes planks, sells them to wood yard, charges VAT. Wood yard sells to joiner, charges VAT, reclaims original VAT. Joiner buys planks, turns them into furniture, sells them to shop, charges VAT and reclaims the VAT he originally paid on the planks. Shop buys furniture, then sells it to customer, charges VAT, reclaims input yet again. Customer buys furniture, Pays VAT on final invoice.

So the only person who actually net PAYS anything is the final customer. However even in that simple supply chain, five individual layers of VAT were involved.
 
What a horribly inefficient way to collect tax!  You don't suppose the whole thing is just a way for the government to clamp down on black markets and cash transactions do you?     

[bloomer]

you also forget that each level the vat increases so some still goes to the treasury as in that example each person who works on the item's time is vatable as it contributes to the value of the processed item.


which is why sole traders can use the fixed payment system to save administration...


still mad that an organisation as big as the NHS pays VAT but from an economic point of view the more times money goes round a loop the better as that all adds to productivity apparently...


economics makes my head hurt...

[happygolucky]

I often think that all the talk about the cost of smoking and drinking to the NHS is strange as, surely heavy smokers and drinkers do pay for their treatment in TAX from the products that make them ill?
Same with over eaters but no TAX on sports!!

I think a lot of government services waste money, that's one reason privatisation was brought in but that's not always good either!  I remember the amount forked out on Social Services transport costs for a start, often to people who already had payments to pay for their transport, I looked after one girl who was taken daily in a taxi to School and even 10 years ago it was approx. £60 one way as it was about 30 mile trip so times that daily buy 2 then the amount of time she had the Taxi for, she stayed with me for a few months  until she was returned back home, although it was the best option to keep the girl in her own environment as much as possible, even though a then suspected paedophile kept picking her up while at School ......

[mowhaugh]

I had never really thought about it, but I suppose the companies selling the products must charge VAT, so the NHS must pay it.  I presume they can claim it back? 

[darkbrowneggs]

But just think of all the work and time involved in booking it out to them and them claiming it back presuming they are vat exempt!  I just can't see the sense in it.

[john and helen]

yes, i book VAT to them when i do work, I am sure they are registered, so they can claim it back…
but as you say…silly really, as it needs someone to do it..so another job created

i have always thought , it would be better not to charge registered people, as they will only claim it back anyway

being self employed..its a pain in the arris …time spent without being paid

[Ina]

But just think, all these accounts would be unemployed if it didn't work like that... Where would new jobs for them come from? Or what would we pay the benefits from they'd now be able to claim (and they would know exactly what to claim and get every penny of it)?

[ShaunP]

They also pay employers NI. It is a smoke screen as it over inflates the money being pumped into the government service sector. There employees also pay tax so when the politicians spout on about how much spending has increased on the NHS it is a big blur. If they did not pay those taxes, do you think the government    would still keep the funding at the same level? It couldnt afford to!!


The simple question should be.....does the NHS or government spend its money wisely??

[bazzais]

They have to do accounts anyway so working out what has VAT and what does not only takes an extra milli-second per transaction to record either way I would have thought.

Its not that they have to pay VAT - its just the supplier has to charge VAT.

[cloddopper]

I often think that all the talk about the cost of smoking and drinking to the NHS is strange as, surely heavy smokers and drinkers do pay for their treatment in TAX from the products that make them ill?
Same with over eaters but no TAX on sports!!

I think a lot of government services waste money, that's one reason privatisation was brought in but that's not always good either!  I remember the amount forked out on Social Services transport costs for a start, often to people who already had payments to pay for their transport, I looked after one girl who was taken daily in a taxi to School and even 10 years ago it was approx. £60 one way as it was about 30 mile trip so times that daily buy 2 then the amount of time she had the Taxi for, she stayed with me for a few months  until she was returned back home, although it was the best option to keep the girl in her own environment as much as possible, even though a then suspected paedophile kept picking her up while at School ......

 I think it's been quoted an average per day stay in hospital is over £20 K. without any treatment or surgery .
Add in thing like cancer treatment  ( my private MRI cost me £650 , 10 yrs ago ) joint replacements£ 15 to 40 K  , eye surgery , heart transplants heart & lung transplant, surgery because of strokes related to the vices  .

By my thinking  the 60 smoker  /heavy drinker with two months total hospital time in their 60 year life  would never ever  pay that much tax in two life times let alone one if you take it as from 17 yrs. old they had 20 fags a day at 80 % tax or three pints of beer a day or a litre bottle of spirit a week.