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VAT Fixed Rate Category

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    VAT Fixed Rate Category

    I gave up programming and I'm contracting as a Quant instead. Does this mean I can pay less VAT as a financial service instead of computer software person?

    How would I go about changing it?

    #2
    Ripped off her madj's site itself...

    4.7 What if the balance between parts of my business changes?
    If the balance changes but you continue to do all the same activities, carry on using the percentage that was appropriate at the start of the year until the anniversary of you joining the scheme. Review the balance between the parts of the business each year. Make this review for the first day of the VAT period in which the anniversary of you joining the scheme falls. If on that date the balance has changed, or you expect it to change over the year ahead, switch to the trade sector for the larger portion of your expected business.

    This may also mean that your flat rate changes. If this occurs use the new flat rate from the start of the VAT period in which your anniversary falls; not just from the anniversary to the end of the period.

    4.8 What if I start or stop a business activity during the year?
    If you stop a business activity or start a new one during the year, you will need to check if the flat rate scheme is still the better way to calculate your VAT. The change may mean you are no longer eligible to use the scheme - see paragraph 12.2. If you are still eligible to use the scheme, consider which business activity forms the larger part of your expected business. Do this in the way described in paragraph 4.7. Apply the appropriate percentage from the date of the change in your business until your next anniversary of joining the scheme, or the next change to your business - whichever comes first.

    If you change flat rate percentages you must write and tell us within 30 days of the change taking place. You should write to the National Advice Service, Written Enquiries Section. [email protected].

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