Export to Alderney

[kal]

Which FRS scheme are you on?!

Sorry my bad :-) So I take it that this means that those invoices do not count as VAT-able turnover from the point of view of calculating how much the OP needs to pay under the FRS scheme.

[TheCyclingProgrammer]

Oh and the saving is nothing like 6% on flat rate tax. Its ((100*1.2)/(1-0.145)) - 1 or 1.4%

Or even closer: ((100*1.2)/(1-0.145)) - unreclaimed input VAT costs.

[TheCyclingProgrammer]

Would it though? On the FRS scheme you pay a %age based on your turnover (regardless of whether you charge VAT or not). If you're no longer charging that VAT to the client then you are almost 20% worse off surely

On the FRS scheme you pay a percentage of your *flat rate turnover* which includes zero-rated and exempt supplies but not supplies outside the scope of UK VAT. It wouldn't even go on your VAT return.

[darrylmg]

You will also have the slight pain of having to file ec sales lists every month.

[BlasterBates]

This cross border VAT can be a minefield. Presonally I don't like the sound of providing services in the UK via a foreign intermediary.

I mean couldn't everyone do this and not pay VAT?

I would certainly take some advice from an accountant.

[TheCyclingProgrammer]

You will also have the slight pain of having to file ec sales lists every month.

Normally, but possibly not in this case. You only have to report supplies of services that are subject to the reverse charge in the customers country.

If ClientCo are exempt from VAT the reverse charge might not apply so it's worth checking.

EDIT: hang on, Alderney isn't part of the EU so not subject to EU VAT. No reverse charge, no EC sales list, surely?

[TheCyclingProgrammer]

This cross border VAT can be a minefield. Presonally I don't like the sound of providing services in the UK via a foreign intermediary.

I mean couldn't everyone do this and not pay VAT?

I would certainly take some advice from an accountant.

OP isn't providing services via a foreign intermediary, they are supplying services from their UK company to a client based outside the UK.

If ClientCo wants to do this that's up to them. I don't think there are any use of or enjoyment rules for professional/consultancy services so as Craig said, it's just outside the scope of UK VAT.

[stek]

You will also have the slight pain of having to file ec sales lists every month.

Quarter.

And that run Jan-Mar on etc, which might not match your accounting year period and you can't apply to stagger.......

[kal]

On the FRS scheme you pay a percentage of your *flat rate turnover* which includes zero-rated and exempt supplies but not supplies outside the scope of UK VAT. It wouldn't even go on your VAT return.

Understood, my crossed wires were because I did some fixed price work for a relative a while ago and he wasn't VAT registered, he couldn't afford an extra 20% on top so I absorbed the VAT into my invoice and in effect paid myself less. He's after more work from me but I've told him its not worth my while

[darrylmg]

Normally, but possibly not in this case. You only have to report supplies of services that are subject to the reverse charge in the customers country.

If ClientCo are exempt from VAT the reverse charge might not apply so it's worth checking.

EDIT: hang on, Alderney isn't part of the EU so not subject to EU VAT. No reverse charge, no EC sales list, surely?

You're correct, no vat and noc ec sales list, see link below.
Life's going to be a joy for the Op.

http://www.brighton-accountants.com/blog/vat-jersey/