VAT FRS calculator?

[d000hg]

I was looking around but couldn't see anything which could help me see the financial differences if I'm on the FRS. Historically, all my company income has been from non-VATable sources (non-EU clients) so staying off the FRS has been better since I can claim back VAT on professional fees etc. But I'm now doing some work in the UK while expecting non-EU work to continue and I'd like a way to plug in my VATable income, nonVATable income, and outgoings on which VAT could be claimed back, and see which is best.

Is there a calculator out there?

[Moscow Mule]

Is it that hard to do yourself?

http://office.microsoft.com/en-gb/excel/default.aspx

[d000hg]

Shame all the people who made all those other calculators didn't listen to you.

Anyone else actually have a helpful answer?

[malvolio]

Jeez....

Assuming you put your net invoice totals excluding VAT into Column A, then a cell containing:

=(sum(a:a) * 1.15) - (sum(a:a)*1.115)

would do it.

Other more sophisticated answers may be available.

[d000hg]

And the difference is what? The amount of VAT I would have to have on purchases for both schemes to be exactly the same overall?

[malvolio]

And the difference is what? The amount of VAT I would have to have on purchases for both schemes to be exactly the same overall?

OK, so I don't understand the question. Want to try again?

Under normal rules it's 15% both ways. Unnder FRS you charge VAT at (currently) 15% on top of inovoice value. You repay VAT at (currently) 11.5% (assuming a standard IT contractor) of gross invoiced value per quarter: only single purchases above £2000 are exempted, and to those standard VAT rules apply. You don't get to choose what you apply VAT to, so exactly what are you asking?

And just to be clear (which you perhaps aren't), VAT is not your money and never is. You are merely passing it along the food chain.

[d000hg]

OK, so I don't understand the question. Want to try again?

Under normal rules it's 15% both ways. Unnder FRS you charge VAT at (currently) 15% on top of inovoice value. You repay VAT at (currently) 11.5% (assuming a standard IT contractor) of gross invoiced value per quarter: only single purchases above £2000 are exempted, and to those standard VAT rules apply. You don't get to choose what you apply VAT to, so exactly what are you asking?

Aha. I was under the impression that FRS meant you couldn't claim back any VAT on purchases, but were able to make a profit on the differing VAT rates you charge/pay on invoiced amounts. I'll have to re-read it as it sounds this isn't correct.

[Sally BFCA]

You could try using HMRC's tool, their VAT flat rate reckoner
http://vatreadyreckoner.hmrc.gov.uk/

[Archangel]

Aha. I was under the impression that FRS meant you couldn't claim back any VAT on purchases, but were able to make a profit on the differing VAT rates you charge/pay on invoiced amounts. I'll have to re-read it as it sounds this isn't correct.

1) You can't claim VAT back on purchases (except for capital purchases over 2k) if you are flat rate vat.

2) The profit comes as follows:
a) Not flat rate scheme, net turnover for period £10,000, VAt charged£1,500
Expenses £1,000 vat reclaimed £150. pay to Vat man £1,500 - £150 = £1,350
b) flat rate VAt scheme, gross turnover £11,500, vat calculated as 11.5% = £1322.50. No VAt reclaimed, pay to Vat man £1322.50

Profit from flat rate vat scheme = £1350 - £1322.50 = £27.50


HTH