Hi guys,
I was reading a few threads about VAT, but they didn't really answer my question so I'm creating a few thread! Hope the forum police don't mind!
I was speaking to some colleagues, and they told me it's not registering the company for VAT since the new rules came into effect. Is there any merit to this argument? I spoke to the accountant and he estimated I'd be better off by roughly £200 in 3 months, compared to not being on the scheme. I've asked him for the calculations so I can see where the savings are. In addition to this registering for VAT would cost an additional £100 + VAT accountancy fees, so wiping out half the gain in the first 3 months.
Quick question on the calcuation front. If the Flat rate vat is 14.5% for IT consultancy, does the 1% bonus bring this to 13.5% and the difference between 20% and 13.5% is what the company would be allowed to keep? Is that the general jist of it?
Thanks again for your help guys!
I was reading a few threads about VAT, but they didn't really answer my question so I'm creating a few thread! Hope the forum police don't mind!
I was speaking to some colleagues, and they told me it's not registering the company for VAT since the new rules came into effect. Is there any merit to this argument? I spoke to the accountant and he estimated I'd be better off by roughly £200 in 3 months, compared to not being on the scheme. I've asked him for the calculations so I can see where the savings are. In addition to this registering for VAT would cost an additional £100 + VAT accountancy fees, so wiping out half the gain in the first 3 months.
Quick question on the calcuation front. If the Flat rate vat is 14.5% for IT consultancy, does the 1% bonus bring this to 13.5% and the difference between 20% and 13.5% is what the company would be allowed to keep? Is that the general jist of it?
Thanks again for your help guys!
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