I am trying to work out whether its best to remain in Flat Rate system or leave
I think it's obvious to leave, but wanted to check my understanding, particularly of VAT reclaimable on Travel Expenses, which is the bulk of my reclaimable VAT
My accountant fees are fairly minimal at £600 (including VAT)/yr as I do everything but produce the accounts = £100
The following expenses are claimable business expenses, I have no doubts in that
However I have always been on the Flat Rate VAT and not normally reclaimed VAT previously in the standard way
In terms of VAT reclaimable on Travel Expenses, does this seem about right?
- VAT is not normally charged on Train and Air fares, which form a good proportion of my travel expenditure
- I pay myself 45p/m but I believe only the VAT fraction is recoverable, for me of the 45p, 9p/m is for fuel so on about 10k miles = £150
- Subsistence approx £7 meal and averaging 4 meals per working weeks (48) = £268
So about £520 in reclaimable VAT
I make the it on the Flat Rate scheme I would get £200 for every 100k of turnover
So seems marginally better to leave the Flat Rate system?
I think it's obvious to leave, but wanted to check my understanding, particularly of VAT reclaimable on Travel Expenses, which is the bulk of my reclaimable VAT
My accountant fees are fairly minimal at £600 (including VAT)/yr as I do everything but produce the accounts = £100
The following expenses are claimable business expenses, I have no doubts in that
However I have always been on the Flat Rate VAT and not normally reclaimed VAT previously in the standard way
In terms of VAT reclaimable on Travel Expenses, does this seem about right?
- VAT is not normally charged on Train and Air fares, which form a good proportion of my travel expenditure
- I pay myself 45p/m but I believe only the VAT fraction is recoverable, for me of the 45p, 9p/m is for fuel so on about 10k miles = £150
- Subsistence approx £7 meal and averaging 4 meals per working weeks (48) = £268
So about £520 in reclaimable VAT
I make the it on the Flat Rate scheme I would get £200 for every 100k of turnover
So seems marginally better to leave the Flat Rate system?
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