Autumn statement - end of VAT flat rate scheme?

[Kugel]

If my VAT inclusive turnover is £120'000 and I buy £2'400 worth of goods to remain on FRS (so it is 2% of my VAT inclusive turnover) - I will make £2'600 profit from FRS. So I get £200 and free goods (worth £2'400). Now I can either keep goods or sell them. Any ideas what these goods can be?

[MrMarkyMark]

If my VAT inclusive turnover is £120'000 and I buy £2'400 worth of goods to remain on FRS (so it is 2% of my VAT inclusive turnover) - I will make £2'600 profit from FRS. So I get £200 and free goods (worth £2'400). Now I can either keep goods or sell them. Any ideas what these goods can be?

PM Del Trotter, he is your man on this occasion

[blackeye]

If my VAT inclusive turnover is £120'000 and I buy £2'400 worth of goods to remain on FRS (so it is 2% of my VAT inclusive turnover) - I will make £2'600 profit from FRS. So I get £200 and free goods (worth £2'400). Now I can either keep goods or sell them. Any ideas what these goods can be?

I think you should probably run this genius tax evasion idea by your accountant first buddy.

[youngguy]

Hmm, you're right. For me this news is the last straw as I have next to no expenses (apart from accounting fees etc), so time to ditch the LTD. Government 1 - Me 0.

Pension is the worry though,that's potentially a big expense

[kaiser78]

Hmm, you're right. For me this news is the last straw as I have next to no expenses (apart from accounting fees etc), so time to ditch the LTD. Government 1 - Me 0.

How come ? Food, travel, phone, stationary, ipad, tv etc etc ?

[TheCyclingProgrammer]

If my VAT inclusive turnover is £120'000 and I buy £2'400 worth of goods to remain on FRS (so it is 2% of my VAT inclusive turnover) - I will make £2'600 profit from FRS. So I get £200 and free goods (worth £2'400). Now I can either keep goods or sell them. Any ideas what these goods can be?

It's getting a bit boring repeating this now, but what about your other inputs? How much are you currently paying, roughly, in input VAT each year? Because if you do as you've planned, you're still left with only £200 to cover your input VAT. The only difference is you've got a couple of grand of stuff you probably didn't need.

[blackeye]

Pension is the worry though,that's potentially a big expense

You can still contribute in your pension from your gross income as a business expense.

[youngguy]

You can still contribute in your pension from your gross income as a business expense.

Is that confirmed ?

So are we saying 100k income - 40k pension means you only pay paye on 60k?

[blackeye]

How come ? Food, travel, phone, stationary, ipad, tv etc etc ?

I spend £2-3 on lunch, walk to the client office, they provide a company phone and FYI you can't expense a tv.

Ltds still might make sense for people that have high travel and accommodation expenses and are still within the 2 year rule.. but not for everyone else. Unless someone here can tell me something I don't know?

[blackeye]

Is that confirmed ?

So are we saying 100k income - 40k pension means you only pay paye on 60k?

Rules haven't changed for employer contributions via an umbrella.

Other expenses have, as alluded to in previous posts.