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Busy high street Nail Shop operating without VAT or Insurance.
I have just discovered this having happened to pop in for a eyebrow threading (brilliant) and an eyelash tint.
I came out with a bloodshot eye as the tint was not put in accurately enough and it got into the eye. The 'beautician' accused me of opening my eyes. I asked for a receipt in case my eye got worse or did not get better and from then on it went downhill. they all panicked. a pettycash voucher was produced. when I insisted on a vat the manager was called and shaking told me they are not vat registered. they have been opened for ages and they are always full!!!! They offered to give me the money back in exchange for the pettycash... they really must be worried.
what am I going to do? report them? I live so close to them I am scared of ripercussions. or am I stupid for thinking that?
Gregm by the way they panicked and tried their utmost not to produce any proof I had been there I doubt it. What kind of limit are we talking about? It is not my intention to complain for the sake of it. Or even for my sake. I just find it disgraceful for lack of a better word to have a fully operating busy high street shop and not pay VAT! It goes without showing the people working there are not professionally trained, nor are paid properly, nor are they paying VAT.
VAT threshold is £73,000 per year. HMRC VAT. If their revenue is less that this, you are incorrect as they are not breaking any rules - it is entirely optional to register if you're not over or expecting to be over the threshold.
By the way, if they are not (legit) registered, they will still pay VAT when buying from VAT registered (the majority) of registered businesses, they are just unable to claim in back.
They probably aren't VAT registered. The staff will be aware that they aren't operating completely above board and will be worried if you seem to know what you're talking about. Insurance is definitely needed for a business like this - how do you know they don't have it?
Why do you want to know this, and what are you planning to do with the info? Seems a bit much on the basis of a blood shot eye.
How do you know they don't have public liability insurance? In any case you do not have to have insurance to operate, obviously if someone sued and won then they would have to pay the claim themselves rather than claim on their insurance
As long as their revenue is under £73K, they are completely above board not being VAT registered though. There might be other issues re bad training / insurance (it should be displayed somewhere, you can check), but the VAT is a complete non-issue unless over threshold.
So if they are all trading accpording to the law, why so paranoid to give out a receipt? I spoke to the manager, btw.
I am sorry but, bloodshot eye or not, IF and I say IF a company does not pay taxes should it not be reported? I am not say that I am going to do something. But would one not be right in doing it? I come from a country where nobody pays taxes and I cannot think of a positive thing about it. True about the insurance, that is something to protect them not us. Oh well that will teach me to check better before hand.
thanks to you all for your info, I have learnt a lot of VAT releated informations, One never knows when they can turn out useful.
(PS a bloodshot eye is nothing if it gets better. Plus if the staff treats you right and apologises and makes sure everything is allright etc it is one thing. to ay it is my fault for having opened my eye is a bit much).
You are wrong in saying they don't pay taxes though. They will pay VAT on products just like any other buyer, VAT-registered or not. Yes, they might be under declaring profits and so in effect not paying full corporation tax, but there is absolutely nothing in your OP that indicates that. You wouldn't know whether a company declares all profits unless you are their accountants / auditors / work with their records. If they bank all the money they get in, correctly accounts for it in their books (which you won't know as a customer anyway), the pay tax at the end of the year like any business.
Do I understand you correctly that they did give you a receipt, OP? Or what do you mean with "pettycash voucher was produced". I can't see the problem with that.
Well I am sure you are all right and that it is a reputable trading enterprise. The way they behaved did not get this across, however, and I am left wondering why the need to so much secrecy. You seem all too believe there is no need for anyone to investigate anyway, which I must say surprises me a bit. Good for them, either way.
Uhm, actually I retract part of my previous post - you did clearly say "IF", sorry. I think there is no basis to support the claim that they are evading tax though, so I don't think you have to worry about it.
In general, I would contact HMRC if I suspected tax evasion, but here I think it's just a misunderstanding between was is actually required in the first place. It has to be based on facts.
Personally, I can tell you have a gut feeling about them based on their reaction, if you 'shop' them and they are trading legally then no harm done. If they are trading illegally then you have highlighted an issue.
I agree that it seems a little odd to not produce a receipt.