VAT FRS new rate

[TestMangler]

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

There were people that discussed getting 10 or 15 contractor co's together back in the early days of IR35 who were all going to do 'consultancy' for each other and pass a couple of grand round between them every month so they all had multiple concurrent clients Nothing would surprise me.

[SueEllen]

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

It's the VAT part of HMRC. I wouldn't annoy them...

[MrMarkyMark]

It's the VAT part of HMRC. I wouldn't annoy them...

Agreed, it goes straight over to Bluestone credit management these days, should you forget to make a payment

Conversely, quite a number of years ago, I sent a cheque from India (yes I know) that "surprisingly" didn't make it to HMRC.

3 months later, when returning, I gave them a call and they were totally fine about it, "Oh, you usually have paid on time etc...", very, very, unnerving

[TheCyclingProgrammer]

Pro rated, so £250 a quarter.

Is it actually defined somewhere what the relevant "accounting period" is? Is it in the draft legislation?

[TheFaQQer]

Is it actually defined somewhere what the relevant "accounting period" is? Is it in the draft legislation?

It's not defined anywhere that I've seen.

[TheCyclingProgrammer]

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

Can't think of much other than stationary and a few other consumable items (printer ink, replacement batteries for devices) so long as these are exclusively for business use.

And if we're all being honest, how many of us have a company owned printer and other stationary that isn't sometimes used for non-business purposes?

[TheCyclingProgrammer]

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

Until the VAT man comes along and says that the transactions for not for business purposes and disallows the whole scheme and you owe loads of VAT to a pissed off VAT man, all so you could avoid having to go onto the standard scheme.

[TheCyclingProgrammer]

It's not defined anywhere that I've seen.

Its defined in the context of VAT here:

https://www.gov.uk/vat-returns/overview

So it *probably* means every VAT quarter. But I'm still not sure it will make a massive difference to most of us in terms of whether you'd make a net loss by staying on the FRS.

[TheFaQQer]

Its defined in the context of VAT here:

https://www.gov.uk/vat-returns/overview

So it *probably* means every VAT quarter. But I'm still not sure it will make a massive difference to most of us in terms of whether you'd make a net loss by staying on the FRS.

The InTouch blog on the topic says "Registered businesses will need to conduct a test every accounting period. The legislation does not say whether they mean the VAT Return accounting period or the business accounting period. The £1,000 however, is an annual limit and so would need to be apportioned to reflect the period considered. Clarity will come forth in the guidance in due course."

[TheCyclingProgrammer]

Clarity will come forth in the guidance in due course."