How Do you have your Ltd Co. Setup?

[Goya]

No. FRVS you claim a % rate based on VATable revenue.

over period invoice for £1000 + VAT = £1,175

Vat Charged = £175

Vat Paid = £1,175 * 12% = £141

Difference = £34 which is the money you save (and will be subject to CT later)

You can clam the VAT back on certain things if an item is over £2,000 IIRC.

HTH

Yeah, and that bit too

Remember, every little helps.

[Nixon Williams]

Still undecided on which VAT scheme to go for.....

Is it correct that is i went for the Flat Rate VAT Scheme i cannot claim back VAT on Accountacy fees, hardware, computers, software etc..?

I'll soon be buying a laptop and a printer for the business. Would i still be able to claim back the 17.5% VAT that i would pay on the purchase even if i am on the Flat Rate VAT Scheme???

Unless you buy an asset costing more than £2000 then no VAT will be reclaimed. You pay over less VAT than you have charged and so should benefit. Most of our clients benefit from it, so even though you cannot claim on most expenses you will benefit over the year.

Alan

[TheFaQQer]

Still undecided on which VAT scheme to go for.....

Is it correct that is i went for the Flat Rate VAT Scheme i cannot claim back VAT on Accountacy fees, hardware, computers, software etc..?

I'll soon be buying a laptop and a printer for the business. Would i still be able to claim back the 17.5% VAT that i would pay on the purchase even if i am on the Flat Rate VAT Scheme???

Price it up - I wasn't flat rate registered at the start, when I was buying lots of capital items (laptop, printer etc.) After that, moved onto flat rate scheme.

In your first year of VAT registration, you get an extra 1% off the flat rate scheme, though, so if you leave the registration until you have income coming in, then you may be better off on flat rate straight off. Ultimately, it depends on the value and type of expenses you will accumulate, and how much you will be earning.

[SandyDown]

friend of mine who is a contractor now for so many years uses her business to do lots of buy to lets (i.e. invests in properties) hence have loads of mortgages agains her company - although using the business to by property doesn't get you the best rate, but it puts your company in extreme debt ( the mortgages) so I presume she pays very little tax?? not sure how she does it, but didn't want to ask too many questions... does anyone think this is a good idea?

[Maxamus]

slightly off topic

can the company secretary make purchases for the company?
or
do all purchases have to be made by me?

[VectraMan]

friend of mine who is a contractor now for so many years uses her business to do lots of buy to lets (i.e. invests in properties) hence have loads of mortgages agains her company - although using the business to by property doesn't get you the best rate, but it puts your company in extreme debt ( the mortgages) so I presume she pays very little tax?? not sure how she does it, but didn't want to ask too many questions... does anyone think this is a good idea?

CT is worked out on assets as well as cash, so assuming she is making a profit overall she'd still pay the same CT. Unless of course all the BTL properties were losing money, which would defeat the object. I think.

[boredsenseless]

slightly off topic

can the company secretary make purchases for the company?
or
do all purchases have to be made by me?

Anyone can make purchases for the company, whether you give them authority to is a different matter.

[Maxamus]

Heres another quick question...i'd rather ask here 1st then to pester the accountant every 5 minutes.

Under my previous umbrella company with Giant i had incurred 7,120 business miles which were at a rate of £0.40 (first 10,000 miles @ £0.40).

So under my new Ltd company do i have 2,880 miles to book at £0.40 or does that reset back to 10,000 again..?

[Pondlife]

It's a personal limit not by company. So no it doesn't reset.

HTH

[Maxamus]

It's a personal limit not by company. So no it doesn't reset.

HTH

that sucks