VAT Flat Rate Scheme Update

[Maslins]

Has anyone had any advice from their accountants about switching off the VAT FRS midway through a VAT period? Mine is waiting for a response from HMRC.

My 2 cents - don't do it. Far more trouble than it's worth. Assuming you're currently on FRS and don't want to be from April, change based on the closest VAT quarter end to 31 Mar.

[pr1]

My 2 cents - don't do it. Far more trouble than it's worth. Assuming you're currently on FRS and don't want to be from April, change based on the closest VAT quarter end to 31 Mar.

'trouble' for "me" or more work for my accountant?

[Pherlopolus]

I am waiting for Acknowledge a request to come off FRS as of start of current quarter. My book keeping is falling behind waiting for NW to change Vantage over... I think it is about 5 weeks since requested now.

[MarkT]

So buying stuff on eEbay isn't a goer, even if it's significant?

I can make a good 10% profit on apple products, why can't I use my ltd company to do that?

[Lance]

I can make a good 10% profit on apple products, why can't I use my ltd company to do that?

You can. And you'll be a different trade and have to change your FRS VAT rate anyway.

[MarkT]

You can. And you'll be a different trade and have to change your FRS VAT rate anyway.

Surely I'd just be "other" ?

[RonBW]

You can. And you'll be a different trade and have to change your FRS VAT rate anyway.

Only if it is the dominant part of the business would you need to reclassify.

[MarkT]

Only if it is the dominant part of the business would you need to reclassify.

I am "other" anyway so I'd carry on as I am. I have wanted to diversify and have a plan B for some time, this is just making me get off my rear and do it properly.

Thanks all

[Alan @ BroomeAffinity]

I am "other" anyway so I'd carry on as I am. I have wanted to diversify and have a plan B for some time, this is just making me get off my rear and do it properly.

Thanks all

The question isn't what rate you're on but what rate you should be on. Why do you think you should be "other"?

(Not saying you shouldn't be, you understand, but I've seen many contractors abusing the system by claiming not to fit in to any category. The Limited Cost Trader rule will certain address this)

[MarkT]

Fair question

I perform PMO services, not project management, not exclusively to any specific industry either. I don't manage projects and I work in IT, Business, Defence and other industries.

My plan B is selling Apple products that I can make 10% on, it's hopefully going to grow as I get bigger discounts for buying bulk.