Going Limited from Umbrella...?

[Sockpuppet]

You charge 17.5% on everything.

You give HMRC 12% of what you brought in (11% in the first year). (or maybe its 11% and 10%)...

Basically its easier and less need to keep reciepts etc for stuff you are claiming. Anything over £2k can be claimed.

or....

Normal vat.

You charge 17.5% on everything, you claim back 17.5% on everything.


If you are earning under £100k/year generally its more effective to be on the flat rate. As it gives you more money.

[Lowery]

Brief description here. Also google "VAT Flat Rate Scheme" which will deliver more than a few explanations.

http://www.hmrc.gov.uk/manuals/bimmanual/bim31585.htm

Talk to your accountant to see if it fits with you....

[Maxamus]

You charge 17.5% on everything.

You give HMRC 12% of what you brought in (11% in the first year). (or maybe its 11% and 10%)...

Basically its easier and less need to keep reciepts etc for stuff you are claiming. Anything over £2k can be claimed.

Your 1st point:
Probably wount be able to claim this VAT back till year end?

Your 2nd point:
No need to keep reciepts for stuff im claiming? What typical item purchases does this include?

Who pays the VAT? The client or the Agency? I think my agency pays the vat at the moment according to Giant's invoices.

Just looked at my sector (civil engineering) at the HMRC site and it is 12.5%

[Nixon Williams]

Your 1st point:
Probably wount be able to claim this VAT back till year end?

Your 2nd point:
No need to keep reciepts for stuff im claiming? What typical item purchases does this include?

Who pays the VAT? The client or the Agency? I think my agency pays the vat at the moment according to Giant's invoices.

Just looked at my sector (civil engineering) at the HMRC site and it is 12.5%

VAT is accounted for on a quarterly basis, if you are on the Flat Rate scheme you simply pay over a % of the gross turnover.

If you are on the normal VAT scheme you pay over the VAT you have charged less any that you are reclaiming.

The VAT is added to your fees and paid to your company, you hold onto these ubtil paid over with the VAT return every 3 months.

You DO need to keep receipts - you need them for corporation tax etc so keep them.

Alan