Fixed rate VAT rate / Silver

[TheCyclingProgrammer]

I think I currently pay 14.5%, with the evil scheme I would pay 16.5% and do more paperwork.

There's certainly no good reason to stay on the FRS on the new rate, financially at least, but what you really need to compare with is moving back on to the standard VAT scheme. This would result in zero profit but it would still give you the same input VAT savings (and possibly more if you buy a lot of hardware that falls below the £2k limit). However it will require a bit more paperwork and receipt keeping.

As you may have guessed, I don't really understand this, but the choice for next year seems to be either:

a) leave the fixed scheme
b) find something to buy so at least you get stuff instead of squandering money paying the vermin.

Correct me if I'm wrong.

A is a valid option, B may not work as anything you buy has to be solely for business purposes.

[Darren at Fox-Bartfield]

VAT

As CP says, the FRS is effectively no longer financially beneficial so moving to the traditional method makes sense if you've input VAT to claim. With this and MTD coming on board next year, makes even more sense to start moving to online record keeping with the likes of Freeagent, Xero, etc where you can store the receipts and which will keep track/calculate any VAT on costs. Will save a lot of issues down the line.