Retaining VAT Monies

[northernladuk]

I agree with Neil, the FRS is taxed as an additional salary. It will not be possible to earn any income under IR35 that is not taxed through PAYE.

So that means both of Lance's posts were wrong?

[Lance]

So that means both of Lance's posts were wrong?

apparently so.
The question then begs as to why on earth you'd ever be on FRS if you're inside IR35. You'd be far better off just taking the VAT off your puchases.

[Chart Accountancy]

apparently so.
The question then begs as to why on earth you'd ever be on FRS if you're inside IR35. You'd be far better off just taking the VAT off your puchases.

You are right, if you incur vat inclusive business expenses not linked to the IR35 contract, you will be better off on the standard scheme.

[Jenme]

Thank you everyone - much appreciated. I tend to agree with you on it being taxed as income, makes sense.

[Jenme]

You are right, if you incur vat inclusive business expenses not linked to the IR35 contract, you will be better off on the standard scheme.

Unfortunately, that isn't my choice

[Lance]

Unfortunately, that isn't my choice

Why not? Are you not the director of the LTD?

[northernladuk]

Why not? Are you not the director of the LTD?

Going for a third strike?

[Lance]

Going for a third strike?

"why not" I thought.

[Jenme]

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.

[northernladuk]

You don't have an accountant?