Autumn statement - end of VAT flat rate scheme?

[SueEllen]

I'll be leaving the FRS, it's been a good number but due to some idiots exploiting it HMRC have effectively closed it down. My accountant will do the extra work anyway and in any case I don't claim much in the way of expenses.

Don't forget VAT isn't supposed to a way of making a profit, so be thankful for a good few years and accept that we are going back to the way it used to be.

I will be doing the same after my next return, simply because I have to stay occasionally in hotels.

[barrydidit]

I will be doing the same after my next return, simply because I have to stay occasionally in hotels.

Expect I'll be doing the same. I had about £4k of VAT inclusive expenditure last year, £150 of which I could say was goods.

[DoobDude]

Just watched the Autumn Statement and Hammond suggested there would be changes coming (ie. closure) of the flat rate VAT scheme to increase tax revenues.

Which basically means less profit and a lot more admin for most contractors.

Seems to be some confusion over this so here is my simple way of working out the FRS.
Eggs ... Grandma ... etc ...

A1 = Daily Rate (£400)
A2 = VAT (£80)
A3 = Gross Rate (£480)

So in excel use the formula =A1+A2-(A3*0.145) to work out this years VAT you keep per day.
Which is currently £10.40 or 13% of VAT

From April the formula becomes =A1+A2-(A3*0.165) which means you keep 80p or 1% of VAT