VAT FlatRate payment calculation

[css_jay99]

3am in the morning, contract has finished and on the bench(well painting at the mo) !

off to Spain in two days for One week of SUN...SEA...PARTY...PARTY

Hi people, I have registered for VAT after deciding not to use service comps any more.
I have also regsitered for HMRC online services for VAT as well so that i can painfully give my money away to the taxman

I registerd for the Flat rate scheme and my 1st return is now due. my questions are:-

1) I am sure i read from somewhere that under the FlatRate Scheme that I will only be paying over not the full 17.5% VAT I collected , true ?, please explain?
2) If above is true will filling out VAT online take account of this or I have to work this out myself (section 1)?

cheers

css_jay99


why is it a pain to find the right gig in the right part of London !

[MikeC1408]

As an it contractor on flat rate I pay VAT at 13% (12% in the first year)

so for example I invoice for £1000 + Vat (17.5%) = £1175

If I pay at 12% then I pay £1175 * 12% = £141 so I get £34 to keep in the company accounts.

Not sure about your second question as I haven't done a return yet, first one due now.

[xodia]

If I pay at 12% then I pay £1175 * 12% = £141 so I get £34 to keep in the company accounts.

Should that not be : £1000 * 12% = £120 i.e. 12% on your turnover not your turnover +vat

[Darren@UptonAccountants]

Vat

Should that not be : £1000 * 12% = £120 i.e. 12% on your turnover not your turnover +vat

Nope, it's worked out on the gross amounts including VAT...

VAT 733-FRS Notes

[TheFaQQer]

There's a pretty thorough explanation in this thread.

[css_jay99]

Muchos gracias!


Taxman will have to wait for his money cos i am off to the airport in 3 hrs!

Spain, here i come


css_jay99

[Bluebird]

and as always - don't forget that any "profit" you make because of the difference between the VAT you charge and the VAT you pay is subject to Corporation Tax at the prevailing rate....

[malvolio]

Muchos gracias!


Taxman will have to wait for his money cos i am off to the airport in 3 hrs!

Spain, here i come


css_jay99

Golden rule - do not be late with VAT payments. The Vatman is much more friendly than Hector, but has very sharp teeth. Do not mess with him.

[css_jay99]

Ok now back from hols.

called the VAT man up to ask if the VAT online site will correctly work out my 12/13% VAT return for Flat rate scheme.

The dude on the line says he has not got a clue what I am talking about cos I am down on their system to hand over the full 17.5%. I was like WTF cos I thought I was going straight on the FRScheme.

The dude said basically after applying for VAT, I aslo have to make an application for the FRS seperately AND in the meantime I should hand over their their 17.5% Entitlements cos they aint going to back date FRS to date of VAT registration!


I dropped the phone in anger and called 2 hrs later and asked to resgiter for FRS after i had calmed down. It was someone else on the phone and he told me that my FRS can start from date of registration which is 1 June 07.

Question is who do I believe ? considering my return has to be in by next month

any clues?


css_jay99

[Sockpuppet]

Go for FRS from date of registration.