VAT FRS new rate

[mudskipper]

You're right though the £1k rule is per annum.

In theory this means your percentage could vary each quarter though in practice I doubt this will make much difference to the average contractor.

Pro rated, so £250 a quarter.

[b r]

cannot be any travel or subsistence,

Where does it ACTUALLY say that?

According to HMRC:

Goods, for the purposes of this measure, must be used exclusively for the purpose of the business but exclude the following items:
capital expenditure
food or drink for consumption by the flat rate business or its employees
vehicles, vehicle parts and fuel (except where the business is one that carries out transport services - for example a taxi business - and uses its own or a leased vehicle to carry out those services)

[mudskipper]

cannot be any travel or subsistence,

Where does it ACTUALLY say that?

According to HMRC:

Goods, for the purposes of this measure, must be used exclusively for the purpose of the business but exclude the following items:
capital expenditure
food or drink for consumption by the flat rate business or its employees
vehicles, vehicle parts and fuel (except where the business is one that carries out transport services - for example a taxi business - and uses its own or a leased vehicle to carry out those services)

Travel and subsistence (hotels etc) are not 'goods'. Food is explicitly excluded.

[ContractorBanking]

looking at it from the other perspective, for a typical IT contractor, do we know what is allowed in terms of goods?

[northernladuk]

looking at it from the other perspective, for a typical IT contractor, do we know what is allowed in terms of goods?

Well as virtually non of us deal in goods then nothing. If you deal with it you'll know. How's that for a rule of thumb?

Not quite understanding why this needs so much discussion lol.

[Lost It]

This might be a useless question, but does 'labour-only' imply anything about the type of work as opposed to some kind of specialism? If you are a building site labourer, you're shifting bricks and whatever, but with no specific expertise. Any difference to 'thinky' work?

I'll never understand why some people think builders aren't well endowed in the thinking department.

Brickies, brickie labourers, whatever you want to call them do a lot of "thinky work" as part of their job. I have some on my job who have to work out on the trot exactly how much weight they can put on the scaffold they are working on (load out) how much muck they need to set the course, what the optimum gap to meet the specs for the building plan is, the time between asking for a mix and it getting to them in a useable state, exactly how many courses they can lay just by looking at the muck delivered, they have to work out complex designs, cutting angles, weights because you can't lay too many courses else it squeezes the muck out of the first course you laid that day, the consistancy of the muck depending on ambient temperature, wastage, where to cut, how many cuts they need to do to complete a course as well as allow a fudge factor where other trades are concerned and the work they need to do to get ahead, manpower needed to complete the tranche of work they are doing at the time (because it's all about rates and limiting waste, waste is lost income effectively) and they do this all before the morning break then again the rest of the working day. Most of them can look at a job and estimate to within 5 bricks what they need, how much muck and how long to build it. Most trades think in 3D.

Well the older ones do, the younger generation just seem to over order everything, cut it about 9 times then fill the skips with their mistakes.

Ok, it's horses for courses but don't ever think brickies are puddings. Or dry wall installers. I know one who could tell me exactly how many screws he needs to raise a drywall... I know plumbers who can look at an install, wander off and pre-bend the pipework and it all fits when they come back. They don't waste much either.

It isn't "book learning" it's a joy to watch.

[northernladuk]

I'll never understand why some people think builders aren't well endowed in the thinking department.

To be fair he did say building site labourer. Not the smartest bunch compared to the tradesmen.

[MrMarkyMark]

I'll never understand why some people think builders aren't well endowed in the thinking department.

Brickies, brickie labourers, whatever you want to call them do a lot of "thinky work" as part of their job. I have some on my job who have to work out on the trot exactly how much weight they can put on the scaffold they are working on (load out) how much muck they need to set the course, what the optimum gap to meet the specs for the building plan is, the time between asking for a mix and it getting to them in a useable state, exactly how many courses they can lay just by looking at the muck delivered, they have to work out complex designs, cutting angles, weights because you can't lay too many courses else it squeezes the muck out of the first course you laid that day, the consistancy of the muck depending on ambient temperature, wastage, where to cut, how many cuts they need to do to complete a course as well as allow a fudge factor where other trades are concerned and the work they need to do to get ahead, manpower needed to complete the tranche of work they are doing at the time (because it's all about rates and limiting waste, waste is lost income effectively) and they do this all before the morning break then again the rest of the working day. Most of them can look at a job and estimate to within 5 bricks what they need, how much muck and how long to build it. Most trades think in 3D.

Well the older ones do, the younger generation just seem to over order everything, cut it about 9 times then fill the skips with their mistakes.

Ok, it's horses for courses but don't ever think brickies are puddings. Or dry wall installers. I know one who could tell me exactly how many screws he needs to raise a drywall... I know plumbers who can look at an install, wander off and pre-bend the pipework and it all fits when they come back. They don't waste much either.

It isn't "book learning" it's a joy to watch.

He particularly mentioned the word labourer, so I believe you are talking apples and oranges.

And yes to be a good and therefore well earning tradesman, which I believe is what you are alluding to, then of course you have to be multi skilled.

[TestMangler]

Well as virtually non of us deal in goods then nothing. If you deal with it you'll know. How's that for a rule of thumb?

Not quite understanding why this needs so much discussion lol.

This

Proper business can deal with it. It's only you lot that can't cause you seem to think the government was giving you some sort of FRS 'bonus'.

[pr1]

looking forward to the tax avoidance schemers making 100 companies that sell each other 2k of goods in a massive circle until the first company returns them for a full refund just so they can all keep their FRS percentage down