VAT, from standard to flat rate

[Lazylobster]

Hi all, new poster here.

Quick question, I have an existing Ltd company which is registered for VAT. I wish to use this company to put my contract through. The question is, is it possible to change the VAT scheme to that of flat rate ?

Cheers
LL

[richy]

Hi all, new poster here.

Quick question, I have an existing Ltd company which is registered for VAT. I wish to use this company to put my contract through. The question is, is it possible to change the VAT scheme to that of flat rate ?

Cheers
LL

Yes, just fill in the form or write to the Flat Rate office at HMRC Grimsby!

[Gonzo]

Hi all, new poster here.

Quick question, I have an existing Ltd company which is registered for VAT. I wish to use this company to put my contract through. The question is, is it possible to change the VAT scheme to that of flat rate ?

Cheers
LL

Yes.

EDIT.

Actually, provided that your company meets the requirements, but if you are a one man band you would have to be on a very high daily rate to be exceeding the upper limit - about £160,000 vatable supplies if my memory serves me correctly.

[pmeswani]

Yes.

EDIT.

Actually, provided that your company meets the requirements, but if you are a one man band you would have to be on a very high daily rate to be exceeding the upper limit - about £160,000 vatable supplies if my memory serves me correctly.

I thought it was £67k was the minimum legal requirement to compulsory register for VAT (incl. Flat Rate). I've registered and my expected annual returns would be £63k. If I am wrong, please can someone point me in the right direction so that I can raise this with my accountant?

[blacjac]

Gonzo was talking about the upper limit. If you go above this then you are not allowed on the FRS

[pmeswani]

Gonzo was talking about the upper limit. If you go above this then you are not allowed on the FRS

My apology, I misread it completely.

[handyandy]

It's actually a bit more complex than that but better for us - if, when you register, you reasonably expect your first year revenue to be below the upper limt (e.g. your contract rate over 220 days i below it) you can go on the FRS - if you later bill more than the lower limit (because you got a big rate hike or did more days, etc.) you can stay on it until you hit another threshold (which IIRC is around £500K).

[Lazylobster]

Good news, thanks to all for the advice

LL

[Gonzo]

Just for completeness, the upper limit for being on the Flat Rate scheme is £150,000 excluding the VAT.

[TheGadgetMan]

...and dont forget, when you start on the FRS you receive a 1% 'complimentary' reduction on your VAT for the first 12 months...now, isnt that nice of them!