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    Default change from standard vat to fixed rate quickly?

    Hello all, I have just registered for vat back in march /april ( registering for the 'standard' scheme) and am just about to submit my vat return tomorrow for the 1st quarter but have looked at the figures and it looks as if i would be much better off using the flat rate scheme and make savings of about 4000 over this period. This is due to the industry i'm in being very labour and insurance heavy with few expenses except for some,which when i need to buy can exceed 2000 in one purchase.

    Is there any way at this late stage to switch to the flat rate before submitting the quarterly return or will i have to bite the bullet and change after this initial quater if that can be done at all?

    i know with everything in the news at the mo some people are switching from the flat rate to standard if they are limited cost traders but cant find much info about switching the other way!

    kind regards, jo

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    You are self accounting? No accountant?
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    TripleIronDad

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    When you apply for FRS you will be given a date when it will start.

    Ask your accountant what rate you will be on. Even with the 1% 1st year discount I ended up on 15.5%! After a year paying 16.5%(on gross not net) makes it not worthwhile.
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    Default

    Quote Originally Posted by jobuck View Post
    it looks as if i would be much better off using the flat rate scheme and make savings of about 4000 over this period. This is due to the industry i'm in being very labour and insurance heavy with few expenses except for some,which when i need to buy can exceed 2000 in one purchase.
    4000 0f savings from flat rate sounds like you either don't understand FRS or you're a butcher/baker/candlestick maker with a bad accountant (and a lot of turnover).

    What industry are you in?
    If you're IT then you're maths are wrong or you misunderstand VAT (a LOT).

    what exactly does your accountant say?

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    You say your expenses are low which sounds like you'd be on the limited cost rate, which is 15.5% with your first year discount.

    To make 4000 in flat rate surplus in the last quarter you would have needed to have turned over more than 300k inc. VAT. I think you've got your maths wrong somewhere.

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