Looks like I've breached the £225k threshold and am no longer eligible for the FRS. Having always been on the FRS since the company formed 3 years ago what if anything should I be looking out for now i.e. expenses - should I make sure every receipt has a VAT number? Is it worth having a leased (or bought) company car now? Am I worrying about nothing?
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Blood in your poo -
Starting with the obvious, you continue to charge 17.5% VAT to your client/agent (output VAT) and pay this over to the VAT man minus any VAT included on your expenses (input VAT).
Input VAT - make sure you get receipts for all your expenses (as you should be doing anyway even on the flat rate scheme) and recording the VAT element to offset against your output VAT. To legitimately claim VAT back on your expenses/costs you should have a valid VAT receipt (shows the VAT number and if possible, the VAT element of the expense).
You cannot claim VAT back on a purchase of a company car, but if you decide to leased a car (contract hire) then the VAT can be claimed back. You would get a payment schedule which shows what VAT can be claimed. Of course, bear in mind BIK issues attached to company vehicles.
No VAT on flights, insurance, use of home provision, train travel, postage. VAT claimable on mileage, accommodation, subsistence, equipment and consumables, telephone and internet.
Hopefully, your accountants spreadsheet/online portal will be able to deal with standard rated business (no doubt they will) as your VAT return will have different figures and calculations to what you are familiar for the last 3 years. -
Breached £22k record?? I just dropped by to say I hate you.
Bah I meant 225k. I used to acheive 22k. Just.Last edited by xoggoth; 10 May 2010, 17:20.bloggoth
If everything isn't black and white, I say, 'Why the hell not?'
John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)Comment
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£225k = a jolly good day rateComment
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