Autumn statement - end of VAT flat rate scheme?

[TheCyclingProgrammer]

Basically for contractors/freelancers or any business whose expenditure is on mostly services rather than goods, yes.

I've already contacted my accountant to find out how I deal with switching over.

[TheCyclingProgrammer]

Not quite, making a 2% profit from the flat rate scheme has been abolished.

For most the profit was unlikely to have been that high. £2600 surplus income on a £100k net turnover but how much was spent on input VAT in the year. Could be as much as half that amount.

I'm less concerned about losing an additional grand in profit (which was effectively easy money) and more annoyed about the extra admin.

[kaiser78]

Not abolished but rising to 16.5%

Also further restrictions to come on what was termed disguised renumeration

Public sector changes to go ahead.

What is rising to 16.5%

[Darren at Fox-Bartfield]

VAT

Looks like a mass migration onto traditional VAT!

[TheCyclingProgrammer]

Looks like a mass migration onto traditional VAT!

In your future...I see paperwork.

[eek]

Looks like a mass migration onto traditional VAT!

Probably. It depends what is meant by Goods and Services - given the reason for this change I suspect Services means accountancy services...

[TheCyclingProgrammer]

What is rising to 16.5%

Nothing.

But there's a new 16.5% FRS percentage for businesses with "limited costs" (which are goods).

https://www.gov.uk/government/public...technical-note

[eek]

Nothing.

But there's a new 16.5% FRS percentage for businesses with "limited costs" (which are goods).

https://www.gov.uk/government/public...technical-note

The most interesting line is

Businesses using the FRS will be expected to ensure that, for each accounting period, they use the appropriate flat rate percentage.

I think I'm leaving the flat rate scheme. Doing the paperwork looks like less work....

[BoredBloke]

When does this percentage change kick on?

[gables]

Surely it's just an end to the easy money. Isn't FRS still going to be easier to operate than traditional VAT?