Autumn statement - end of VAT flat rate scheme?

[TheCyclingProgrammer]

I'll buy £3k of paper and then sell £3k of paper to you. The cost of this transaction is likely to be less than switching to a 16.5% FRS %.

I don't want £3k worth of paper.

[Alan @ BroomeAffinity]

I don't want £3k worth of paper.

You can sell it back. Then you'll both have bought £3k of goods.

(Not suggesting you do this by the way)

[TheCyclingProgrammer]

You can sell it back. Then you'll both have bought £3k of goods.

(Not suggesting you do this by the way)

Someone, somewhere is going to have a paper surplus.

[chopper]

You can sell it back. Then you'll both have bought £3k of goods.

(Not suggesting you do this by the way)

The only way it would work, being an FRS business, is to buy £3000 + VAT worth of paper, but then sell it for £3600 + VAT, otherwise if you were to sell it for £3000 + VAT, then you would lose £600 (as being unable to reclaim the input VAT) as well as losing another £522 on having to give HMRC 14.5% of the £3600 you sell it on for. tulipty.

[eek]

You can sell it back. Then you'll both have bought £3k of goods.

(Not suggesting you do this by the way)

That to me looks like carousel fraud..

[Alan @ BroomeAffinity]

That to me looks like carousel fraud..

Exactly. It was a glib remark not to be taken seriously.

[Alan @ BroomeAffinity]

The only way it would work, being an FRS business, is to buy £3000 + VAT worth of paper, but then sell it for £3600 + VAT, otherwise if you were to sell it for £3000 + VAT, then you would lose £600 (as being unable to reclaim the input VAT) as well as losing another £522 on having to give HMRC 14.5% of the £3600 you sell it on for. tulipty.

I wasn't being serious.

[minstrel]

The only way it would work, being an FRS business, is to buy £3000 + VAT worth of paper, but then sell it for £3600 + VAT, otherwise if you were to sell it for £3000 + VAT, then you would lose £600 (as being unable to reclaim the input VAT) as well as losing another £522 on having to give HMRC 14.5% of the £3600 you sell it on for. tulipty.

But surely you are making more than £600 by being on 14% FRS instead of 16.5%?

[minstrel]

Exactly. It was a glib remark not to be taken seriously.

I agree that buying and selling paper for no business purpose is similar to carousel fraud, but most contractors could add a small side line doing genuine commercial trading to get up to 2%.

My wife probably sells over £3k of stuff on eBay each year. My Ltd could buy it off her and then sell it through the Ltd.

My Ltd could even employ her to sell it. Might even give me more justification to pay her a £8k salary and give her 50% shares

[radish2008]

Doesn't the new 16.5% FRS % only apply to limited cost traders?
So if you are a £100k turnover business and buy > £2k of goods you can stay on the old FRS?

A new SurfaceBook every year maybe ?