Originally posted by radish2008
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Autumn statement - end of VAT flat rate scheme?
Collapse
X
Collapse
-
'CUK forum personality of 2011 - Winner - Yes really!!!! -
Originally posted by northernladuk View PostYou do know the name of your accountant don't you?
I'm going standard. Next year. I do need a tax efficiency overview though. Not sure what else I can do.Comment
-
Originally posted by radish2008 View PostOk - so let me just check this.
Currently I earn 100k - Plus 20% VAT and I pay 14.5% of that 20% to Gov.
In April 2017 I earn 100k + 20% VAT but pay 16.5% on £120k to Gov ?
I've just done my final year accounts and as expected my CT has increased by £5k + I have 2k on account to pay.
:-(Comment
-
I currently rent while I'm staying away (no vat), I'm thinking it might be be better to stay in a hotel even though it will cost more and move onto standard vat. Will have to crunch the numbers.Comment
-
Originally posted by stek View PostYou don't pay VAT on personal earnings. Are you getting confused with income tax?Comment
-
Originally posted by radish2008 View PostNo, not confused. It's income tax. Was just having a general whinge about the extra tax going out this year.Comment
-
Originally posted by Yorkie62 View PostWhich is £200 difference between the 20% collection rate and 16.5% payment rate over your £100k annual turnover.
So if the difference between your vat in and vat out on your receipts is greater than £200 your are better off on the std rate vat scheme.
For example a hotel charges £50 per night. You stay 4 nights per week that is £200 per week including VAT. Ex VAT is £166.67.
That means that weekly VAT in/out delta on this very very simple model is £33.33 per week. Which means you only need 6 weeks in the hotel to make the std VAT rate look attractive."Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.Comment
-
Originally posted by DaveB View PostThen add in ~£30 pa extra vat on £99 pcm accountancy services, plus VAT on insurances, contract reviews etc. It's marginal at best without the additional costs of working away. It wouldn't take much for Std Rate and claiming everything back to be a better option.Comment
-
Yes it was a bit of an "extra" but its more pennies being scratched back off us.
I reckon on £500/day its about £12 gross.
Like others have said, on 16.5% you make very little indeed. £1 on £500 a day I reckon roughly.
Based on 20 days thats £20 a month. Surely you've just got to spend £100 on the standard vat system to make it worth leaving flat rate now?
Accountants fees for a start? Hotels etc....Rhyddid i lofnod psychocandy!!!!Comment
-
Originally posted by psychocandy View PostYes it was a bit of an "extra" but its more pennies being scratched back off us.
I reckon on £500/day its about £12 gross.
Like others have said, on 16.5% you make very little indeed. £1 on £500 a day I reckon roughly.
Based on 20 days thats £20 a month. Surely you've just got to spend £100 on the standard vat system to make it worth leaving flat rate now?
Accountants fees for a start? Hotels etc....Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment