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Flat rate VAT - anyone dropped out of it now?

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    Flat rate VAT - anyone dropped out of it now?

    I guess most accountants are saying, nah, stay in there's little to be gained. But they would say that I guess because there's more work involved for them.

    So what has everyone done? Personally, money is money lol. When you're getting £73 a week at times it makes a difference!
    Rhyddid i lofnod psychocandy!!!!

    #2
    If you're accountant advises to stay in when you're clearly better out, I'd get a new accountant.

    I asked the question, asked for a comparison for a typical quarter and they came back with the figures and agreed it would be better out from 1st April, so they sorted it for me.

    Comment


      #3
      You really need to stop guessing. Every single post now.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by psychocandy View Post
        I guess most accountants are saying, nah, stay in there's little to be gained. But they would say that I guess because there's more work involved for them.

        So what has everyone done? Personally, money is money lol. When you're getting £73 a week at times it makes a difference!
        If an accountant is advising to stay in just because it's more work for them then they really shouldn't be an accountant and I think that's a pretty stupid think to guess tbh. I know we looked at a comparison for each client individually, advised what was best in terms of tax efficient and then let the client decide (most left the scheme, some stayed in).

        Martin
        Contratax Ltd

        Comment


          #5
          I dropped the FRS earlier in the year, due to spending 300-400 a week on hotels/subsistence and doing about 300 miles a week.

          If I was in a local contract I would have probably not bothered. I only bother to claim the vat back on big ticket items.

          Comment


            #6
            Of our clients who were on the FRS, numbers are approx as below:
            - half leaving the FRS,
            - quarter staying on it (as like the simplicity and figured there wasn't much in it cash-wise)
            - quarter haven't responded...and will either never notice, or in a few months be wondering why their VAT bills are creeping up.

            Comment


              #7
              To be honest, its is more hassle to drop flat rate for both contractor and accountant. It depends on the gain/hassle balance I suppose.

              To be fair, my accountant (who is brill) has pointed out there is a slight £ advantage but has also pointed out there is more work. But up to me. Fair enough.

              I just wondered what others were doing...
              Rhyddid i lofnod psychocandy!!!!

              Comment


                #8
                Originally posted by psychocandy View Post

                I just wondered what others were doing...
                We are doing whatever our accountant advises based on our individual circumstances. HTH BIDI.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  I left at the beginning of April. Hasn't been a problem.

                  Comment


                    #10
                    Originally posted by psychocandy View Post
                    To be honest, its is more hassle to drop flat rate for both contractor and accountant. It depends on the gain/hassle balance I suppose.

                    To be fair, my accountant (who is brill) has pointed out there is a slight £ advantage but has also pointed out there is more work. But up to me. Fair enough.

                    I just wondered what others were doing...
                    Your accountant must be a saint.

                    Comment

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