VAT Flat Rate Scheme Update

[TheCyclingProgrammer]

1. No, vehicle costs are excluded unless you run a transport business.

2. Equipment and fixtures and fittings are largely capital in nature so are excluded.

3. Small consumables and other small bits of office equipment qualify as goods.

[cwah]

Thanks cyclingprogrammer. For the 1 & 3 I was more or less expecting that. But for equipment and fixture, is everything capital? I mean a carpet can't be capital? I'll never sell that? As well as paint and load of other things

[TheCyclingProgrammer]

Thanks cyclingprogrammer. For the 1 & 3 I was more or less expecting that. But for equipment and fixture, is everything capital? I mean a carpet can't be capital? I'll never sell that? As well as paint and load of other things

I think you'll have some issues with duality of purpose doing up a room in your house. Buying office furniture fine, paint and carpet, pushing your luck.

[psychocandy]

[emoji15]

How much?????

[psychocandy]

Well like others have said its probably only going to make a difference of a few £100 a year for most people.

Personally, I think I will come off FRS. Can't blame the accountants for saying you might as well stay - its more work for them after all.

But I dont think its that difficult - I already send my accountant invoices and expense sheets every month anyway.

And as I said before, I go out of my way to claim £75 a week when Im on the bench!

[css_jay99]

so thinking moving to standard VAT scheme ......

no point reclaiming the VAT on mobile phone bill due to private use element.

What about :-
1) Cost of Mobile phone
2) Computer equipment as a capital expenditure

[TheCyclingProgrammer]

so thinking moving to standard VAT scheme ......

no point reclaiming the VAT on mobile phone bill due to private use element.

What about :-
1) Cost of Mobile phone
2) Computer equipment as a capital expenditure

If YourCo purchases the phone or the computer equipment and has a valid VAT invoice in its name then it can reclaim the VAT. If the phone contract is in the company name it can also reclaim a proportion of the VAT, adjusted for any personal/private use element. You don't need to apportion the VAT on the cost of the handset or any fixed charges though.

[d000hg]

so thinking moving to standard VAT scheme ......

no point reclaiming the VAT on mobile phone bill due to private use element.

What about :-
1) Cost of Mobile phone
2) Computer equipment as a capital expenditure

I asked this in some thread but didn't see a reply: does capital expenditure count towards your 2%/£1 threshold for FRS?

Just today one of my monitors suddenly died and I could do with a new laptop. If I spend a grand on those things, and my other VAT-able expenses are minimal (basically accountancy fees) am I a)able to stay FRS b)better off doing so?

[oliverson]

So, stationery qualifies. I'm going to have to up my search for Penny Blacks.

[Alan @ BroomeAffinity]

I asked this in some thread but didn't see a reply: does capital expenditure count towards your 2%/£1 threshold for FRS?

Just today one of my monitors suddenly died and I could do with a new laptop. If I spend a grand on those things, and my other VAT-able expenses are minimal (basically accountancy fees) am I a)able to stay FRS b)better off doing so?

Neither cap ex or accounting fees count. There's a list up there ^^^ somewhere.

You can reclaim the VAT on this expenditure but it doesn't count toward the 2%. These are easily, and often, confused.