I'm looking at setting up a ltd for my first contract and would like to take advantage of the flat rate VAT scheme if possible. The only "issue" is that the daily rate is very good, and if I did a year in the contract my annual earnings before VAT would be well over £150k so I wouldn't be able to join the scheme (yes, I know it's a nice problem to have!).
The initial contract is only for 6 months so could I legitimately argue that I'm not forecasting earnings over £150k as I don't have enough contracted revenue to base that on?
The likelihood is it will be renewed, but for business planning purposes it seems prudent to base my forecasts on signed contracts rather than expectations. Especially as this particular contract is around £200 per day more than others I've seen so if I didn't get extended at 6 months I'd be very unlikely to go over the £150k mark, even if I got into another contract immediately.
The initial contract is only for 6 months so could I legitimately argue that I'm not forecasting earnings over £150k as I don't have enough contracted revenue to base that on?
The likelihood is it will be renewed, but for business planning purposes it seems prudent to base my forecasts on signed contracts rather than expectations. Especially as this particular contract is around £200 per day more than others I've seen so if I didn't get extended at 6 months I'd be very unlikely to go over the £150k mark, even if I got into another contract immediately.
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