Originally posted by tarbera
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VAT registered - But not flat rate registered yet - Am I losing money?
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Originally posted by Greg@CapitalCity View PostYes, you are losing out on the benefits of the flat rate scheme, until you actually register your company into the scheme. Doing this is easy. Fill in the form (VAT 600FRS - Application to join the Flat Rate Scheme) and then email it to [email protected].
You need to specify when you want the FRS to be effective from, and generally the HMRC will not allow you to retrospectively do this for VAT periods that have already had a VAT return filed for them. If this is your first VAT period, and say you became registered for VAT effective from 01 August 2011, then get a FRS scheme application in ASAP stating a start date of 01 Aug 2011.
Thanks.Comment
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So when is it more beneficial to be on the FRS scheme. I'm normal VAT registered but my accountant suggested I swap.What happens in General, stays in General.You know what they say about assumptions!Comment
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Originally posted by myco View PostI have done this. Do they generally email you back with a confirmation of the FRS start date? Or should I expect something in the mail in a week or so?
@MarillionFan, its better (financially) to go onto the flat rate scheme when the amount of 'profit' you make from being on the flat rate scheme consistently beats the amount of VAT you spend on company expenses and purchases. For example, if you invoice £6,000 a month, and are in IT where the FRS trade sector % is 14.5%, then you would bill £6,000 x 20% = £1,200 in VAT to your client, and would have to return (£6,000 + 20%) x 14.5% = £1,044 in VAT to the tax office in your VAT return. Your 'profit' from the FRS is £156. If you spend less than £156 per month in VAT on expenses and assets, then you are better off on the FRS.2012 CUK Reader Awards - '...Capital City Accountancy, all of whom were outside the top three yet still won compliments from CUK readers for their services' - well, its not an award, but we'll take it! - Best Accountant (for IT contractors) category
2011 CUK Reader Awards - Top 3 - Best Accountant (for IT contractors) category
|| Check us out at: http://www.linkedin.com/company/capi...ccountancy-ltdComment
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An update I should have posted earlier : I did receive the FRS approved from the start of my first VAT quarter.
Happily invoicing and making the extra bit off the FRS ever since.Comment
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I wouldnt bother registering for VAT unless you have lots of vat-able expenditure ie hotels when working away from home etc.
I wouldnt register for the VAT FRS either unless your turnover is more than the threshold. If you are under the VAT threshold, you'll only get about 1300 quid a year or a 100 a month off HMRC. And for that princely sum, you give them another legitimate way of entering your home and \ or doing a VAT enquiry which could lead on to a status enquiry and ultimately an IR35 enquiry.
I'd rather 'manage' my turnover to be under the threshold and not take HMRC's 'shilling' giving them further opportunities to open investigations.
But each to their own risk assessment.I couldn't give two fornicators! Yes, really!Comment
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Originally posted by BolshieBastard View PostI wouldnt register for the VAT FRS either unless your turnover is more than the threshold. If you are under the VAT threshold, you'll only get about 1300 quid a year or a 100 a month off HMRC.Contracting: more of the money, less of the sh1tComment
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Originally posted by kingcook View PostYou'd throw away £100+ per month, just because you didn't want to spend a one-off 10 minutes filling in the VAT FRS form?
I just dont see 100 quid a month as a big enough bribe from HMRC to give them a further opportunity to enter my home and instigate a VAT enquiry that could potentially eventually lead to an iR35 investigation.
If you are happy to take that risk for a measely 100 quid then good for you.I couldn't give two fornicators! Yes, really!Comment
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Originally posted by myco View PostOh. I didn't. Thanks for pointing that out.Rhyddid i lofnod psychocandy!!!!Comment
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Originally posted by BolshieBastard View PostNope, not for filling in the form.
I just dont see 100 quid a month as a big enough bribe from HMRC to give them a further opportunity to enter my home and instigate a VAT enquiry that could potentially eventually lead to an iR35 investigation.
If you are happy to take that risk for a measely 100 quid then good for you.
(edit: but then again it cant be that good if your under the VAT threshold)Rhyddid i lofnod psychocandy!!!!Comment
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