Retaining VAT Monies

[TheCyclingProgrammer]

I think FRS does work out better for us and when I rang HMRC to check whether I had set it up right (I'm learning so checking everything twice) they said, I had to be on that scheme.

You don't have to be on the FRS. It's completely optional.

[Scruff]

@OP Jenme :- Please engage the services of a Chartered Accountant, or at least someone in the Professional Services - Accountancy sector. You sound as though you think that doing your own bookkeeping is a substitute for the expertise gained over a lifetime of qualifications and experience gained?

Its a bit like going to B&Q and buying all the materials to build a Bungalow, armed with plans from Instructables.com

[l35kee]

@OP Jenme :- Please engage the services of a Chartered Accountant, or at least someone in the Professional Services - Accountancy sector. You sound as though you think that doing your own bookkeeping is a substitute for the expertise gained over a lifetime of qualifications and experience gained?

Its a bit like going to B&Q and buying all the materials to build a Bungalow, armed with plans from Instructables.com

I'd say that's too kind..

It's more like going to B&Q and buying (what you think are) all the materials to build a Bungalow, but having never seen a bungalow before, nor having any full set of plans. Then when you get to your plot of land, you log into a forum full of other people who at least have a bunglow, but got a professional to build it for them, and ask those people how they think you should start laying bricks.

[Jenme]

It's not that bad - my background is finance but not in general accounting, hence my query on the VAT. The rest I'm okay with.

[Mordac]

It's not that bad - my background is finance but not in general accounting, hence my query on the VAT. The rest I'm okay with.

The small saving you'll make by doing it yourself really isn't worth the almighty risks you'll be taking by not having a professional do it for you. I've been contracting for 25 years now, and trust me, you really should at least speak to a proper contractor accountant. The goalposts are moving on an almost daily basis, and any mistakes you make will be very expensive.

[SueEllen]

It's not that bad - my background is finance but not in general accounting, hence my query on the VAT. The rest I'm okay with.

If you don't know the basics of VAT then you need professional help.

You shouldn't need to come to a forum of contractors, most of whom aren't accountants, to ask about it if your knowledge of finance was sufficient.

[Jenme]

If you don't know the basics of VAT then you need professional help.

You shouldn't need to come to a forum of contractors, most of whom aren't accountants, to ask about it if your knowledge of finance was sufficient.

You could argue that, for every post that is on here. I wanted to double check what peoples experiences were regarding VAT as I didn't quite believe what I was being told by HMRC and so I feel it was correct to double check my thought process on this one issue.

[SueEllen]

You could argue that, for every post that is on here. I wanted to double check what peoples experiences were regarding VAT as I didn't quite believe what I was being told by HMRC and so I feel it was correct to double check my thought process on this one issue.

Oh dear.....

[Lance]

I didn't quite believe what I was being told by HMRC

but you did believe that you MUST be on FRS. And that's not the question you cam here to ask.
Your issue is that you don't know how much you don't know so you don't know what to ask.

[Nominally]

In Theory...

if I was prepared to pay the full whack of income tax, all NICs and everything without any attempts at minimising/avoiding; would it be possible to do my own accounts for contracting inside-IR35 with only minimal risk?