VAT on mileage (fuel scale charge)

[partimer]

clarify

To clarify, the 12 percent is only available if you are in your first 12 months of trading i.e. if you've been going for longer than 12 months like most of us, you don't get the 1 percent discount.

So if you've been trading for 3 months you can only get 1 percent discount for 9 months. Read it all at the HM Customs site.

[DaveB]

To clarify, the 12 percent is only available if you are in your first 12 months of trading i.e. if you've been going for longer than 12 months like most of us, you don't get the 1 percent discount.

So if you've been trading for 3 months you can only get 1 percent discount for 9 months. Read it all at the HM Customs site.

And this is why I'm not an accountant

[boredsenseless]

To clarify, the 12 percent is only available if you are in your first 12 months of trading i.e. if you've been going for longer than 12 months like most of us, you don't get the 1 percent discount.

So if you've been trading for 3 months you can only get 1 percent discount for 9 months. Read it all at the HM Customs site.

Actually according to HMRC its your first 12 months of registration. So if you've never been registered in the 3 months above you can still have all 12.

Also as we've covered a few times, if you ever have to sub-contract any work or get the services of another consultant that you have to pay via their invoices you can't claim back the VAT as this is a service and the reclaim option for values over 2000 only applies to goods.

[DaveB]

Actually according to HMRC its your first 12 months of registration. So if you've never been registered in the 3 months above you can still have all 12.

Also as we've covered a few times, if you ever have to sub-contract any work or get the services of another consultant that you have to pay via their invoices you can't claim back the VAT as this is a service and the reclaim option for values over 2000 only applies to goods.

You can opt of the scheme at any time and rejoin later, although you do have to wait 12 months before re-applying.

If you are going to start getting large VAT inclusive invoices it may work out better to leave the scheme and come back again in 12 months.

IANAA, YMMV.

[partimer]

ok

As per usual with these things, they get tweaked every budget so I happily admit to my mistakes. Best advice is to always research the current rules

I'm waiting for when Fatboy Clown tweaks the rules so that Zero Rate VAT is only available to "genuine businesses" and comes knocking for back payments ...

Just look at the double U-turn on the tax breaks for the film industry.

[freshblue]

Cheers chaps...