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Leaving FRS? FreeAgent tip

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    Leaving FRS? FreeAgent tip

    If, like me, you plan to leave the FRS on 1 April due to the new low cost trader changes and you use FreeAgent, and the 1 April falls in the middle of your current VAT quarter, my accountant just share this little guide of how to deal with this in FreeAgent:

    https://jffinancial.zendesk.com/hc/e...o-standard-VAT

    TLDR; you can change your FreeAgent return date so you can effectively create two VAT reports - one up to the point you left and one up to the end of your VAT quarter using standard rate calculations. You'll have to combine these and submit the return using HMRC online software but should be able to continue using FreeAgent for VAT returns for subsequent returns.

    #2
    Thanks for the tip

    Was contemplating this though figured there was more risk of stuffing it up to justify the potential saving but with this guide perhaps I'll have a go.

    what date will you be switching over?

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      #3
      Originally posted by MrC View Post
      what date will you be switching over?
      1 April.

      Comment


        #4
        Originally posted by TheCyclingProgrammer View Post
        1 April.
        Yeah right. You think we are gonna fall for that one????
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Do you really spend that much on things with VAT on??

          Comment


            #6
            Originally posted by SeanT View Post
            Do you really spend that much on things with VAT on??
            Accountancy fees alone have more VAT than you'd make on FRS with £100k turnover. Add in at least one asset a year, miscellaneous admin expenses etc.

            Comment


              #7
              Oh I get it now - £200 - that really sucks balls. My 1% discount and purchase of a laptop over £2k means it's worth sticking with it until the day the discount runs out, but after that I can probably manage at least £500 a year on food, accountancy fees and minor purchases. Time to get used to asking for VAT receipts.
              Last edited by SeanT; 11 March 2017, 15:38.

              Comment


                #8
                Originally posted by SeanT View Post
                Eh? The VAT on my accountancy fees is 12 quid a month. 3.5% of a hundred grand is £3500? Have I missed something here?

                Yep because its not 16.5% on the £100k (before VAT) the rate is charged on the total cash income including VAT.

                Hence its 16.5% of £120k or £19800 so you are left with £200 if you remain on the flat rate scheme.

                I definitely spend £200 on vat deductible purchases (heck my accountant gets £130 in VAT a year).
                merely at clientco for the entertainment

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                  #9
                  See edit above

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                    #10
                    Originally posted by SeanT View Post
                    See edit above
                    And see my reference to an application called xpenditure in test please delete.

                    I think expenses are now utterly painless
                    merely at clientco for the entertainment

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