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VAT Flat Rate Scheme Update

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    Tomorrow is the last day to make a decision on leaving the FRS for this quarter.

    A lot of people mentioned that there is more paperwork to do using the "normal" scheme. My company uses an app to manage its books and I already enter all expenses into the system. It seems like all I need to do is make a few changes to the system's settings and pay more attention to the VAT rate when inputting expenses.

    Is there something I'm missing? Is the hardest part classifying each expense?

    Thanks.

    Comment


      Originally posted by Andrew@HillierHopkins View Post
      I may be wrong but as I understood you can't stop using the FRS during a VAT period. But you can have 2 different flat rates within a return. Unfortunately Freeagent hasn't managed to figure out how to add the 2 sets of figures together and those using Freeagent will need to file April and May returns with different flat rates using good old HMRC online.
      You can stop using the FRS mid period.

      You'll need to split your return periods in FreeAgent to generate the right numbers and add them together and submit your return using the HMRC portal. You'll then be able to continue using FreeAgent to submit your returns.

      Comment


        Finally got around to contacting the VAT department to check my request had been actioned. It has, but they are currently having delays in sending out confirmations (not really surprising). They also confirmed to me that I simply account for Feb/Mar on the FRS and April on the standard scheme and combine the figures in my next VAT return.

        If you want to ring up and check, when you go through the annoying voice recognition menu system, don't specify that you're cancelling the FRS as it will just tell you that you can't do it on the phone and hang up - specify "other".

        Comment


          Originally posted by DesDixon View Post
          I'm getting square-eyed looking through this thread so forgive me if it has been posted but can anyone enlighten me how to switch to the new 16.5% FRS scheme from the previous 14.5% FRS scheme?
          Originally posted by northernladuk View Post
          You tell your accountant
          I thought the point was you didn't switch, existing FRS members just pay each quarter's VAT at the correct rate based on whether you meet the LCT/FRS rules - I was rather assuming there was a new check-box on VAT returns or something?
          Originally posted by MaryPoppins
          I'd still not breastfeed a nazi
          Originally posted by vetran
          Urine is quite nourishing

          Comment


            Originally posted by d000hg View Post
            I thought the point was you didn't switch, existing FRS members just pay each quarter's VAT at the correct rate based on whether you meet the LCT/FRS rules - I was rather assuming there was a new check-box on VAT returns or something?
            You're right, but I doubt there's a checkbox. You just apply the appropriate percentage and keep a record of what you used.

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