Autumn statement - end of VAT flat rate scheme?

[Major Hassle]

On the bench at the moment and think it's better to get it done now so that there are no invoicing changes to be done mid future gig.

You wouldn't need to change your invoicing....

[TheCyclingProgrammer]

You wouldn't need to change your invoicing....

He would if he deregistered mid contract.

[ctdctd]

You wouldn't need to change your invoicing....

Invoice with VAT up to de-registraton date.
Change paperwork to remove VAT number afterwards
Invoice without VAT afterwards

If this happened mid gig, most agents accounts department (Doreen or Quentin) heads would explode and payment would be delayed.

[radish2008]

Ok - 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.

:-(

[Major Hassle]

Invoice with VAT up to de-registraton date.
Change paperwork to remove VAT number afterwards
Invoice without VAT afterwards

If this happened mid gig, most agents accounts department (Doreen or Quentin) heads would explode and payment would be delayed.

Yes indeed, I meant you wouldn't need to change if you moved from FRS to std VAT...

[ctdctd]

Ok - 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 ?(

Currently you pay 14.5% of 120K = 17K4
From April 2017 you pay 16.5% of 120K = 19K8

[ctdctd]

Yes indeed, I meant you wouldn't need to change if you moved from FRS to std VAT...

Have dealt with std VAT before, it would be remarkably similar to your user name to go back on it!

It would also have little financial benefit, hence the de-registration.

[Major Hassle]

Have dealt with std VAT before, it would be remarkably similar to your user name to go back on it!

It would also have little financial benefit, hence the de-registration.

Believe it or not Major Hassle was the name of my great great grandfather, my surnames not Hassle btw...

Some of us won't have a choice however so will be forced down the st VAT route

[Rusty Shackleford]

I earn around 54000 a year. Do you know the rough impact on me?

[Yorkie62]

Currently you pay 14.5% of 120K = 17K4
From April 2017 you pay 16.5% of 120K = 19K8

Which 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.