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VAT Flat Rate Scheme Update

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    #11
    Originally posted by RonBW View Post
    Do you still get a 1% discount in your first year of VAT registration if you still use FRS?
    Yes the 1% discount is still in place.

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      #12
      Originally posted by Alan @ BroomeAffinity View Post
      Yes, you do. I had a notion that they may have withdrawn this for low cost traders, but it seems not.
      That might make a slight difference for those starting out then. Thanks.
      First they ignore you, then they laugh at you, then they fight you, then you win. But Gandhi never had to deal with HMRC

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        #13
        TLDR; most of us will want to seriously consider coming off the FRS and people who have been trying to concoct buy/sell schemes to try and get around it are, predictably, out of luck.

        Comment


          #14
          Originally posted by TheCyclingProgrammer View Post
          TLDR; most of us will want to seriously consider coming off the FRS and people who have been trying to concoct buy/sell schemes to try and get around it are, predictably, out of luck.
          No they just want a letter than an early morning visit from the VAT fraud investigation team.
          "You’re just a bad memory who doesn’t know when to go away" JR

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            #15
            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.

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              #16
              Originally posted by alloverit View Post
              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 accountant will change me to normal VAT at the end March. My next VAT period ends at the end of April.
              See You Next Tuesday

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                #17
                Originally posted by Lance View Post
                My accountant will change me to normal VAT at the end March. My next VAT period ends at the end of April.
                You won't be able to use the cash accounting scheme until your next VAT period.

                So you have to pay all your VAT for April up front.
                "You’re just a bad memory who doesn’t know when to go away" JR

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                  #18
                  Originally posted by SueEllen View Post
                  You won't be able to use the cash accounting scheme until your next VAT period.

                  So you have to pay all your VAT for April up front.
                  I don't think that's the case if you are already operating cash accounting.

                  What if I used Cash accounting before joining the Flat Rate Scheme?
                  You carry on as before. There is no need to pay the VAT your customers owe you when you change schemes. Include any payments you receive whilst using the Flat Rate Scheme in the total to which you apply your flat rate percentage. VAT Notice 731 Cash accounting gives information about the Cash accounting scheme.

                  Comment


                    #19
                    Originally posted by alloverit View Post
                    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.
                    We're looking at each case individually but it looking like a choice between (a) stay on FRS at 16.5% for convenience if nothing else; (b) switch to standard if your VAT reclaimable expenditure exceeds c£2,000 per year; or (c) de-register for VAT if your turnover is less than £81k. A and C are for those who wish to eliminate the ballache of keeping receipts and recording the VAT, and B is for those who wants to save a couple of quid.

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                      #20
                      Originally posted by Alan @ BroomeAffinity View Post
                      I don't think that's the case if you are already operating cash accounting.
                      Cash accounting in the flat rate scheme is considered separately from normal VAT cash accounting.

                      I would just ring the VAT office up and check.
                      "You’re just a bad memory who doesn’t know when to go away" JR

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