Autumn Statement 2016

[siouxchief]

Well, this new 16.5% VAT rate will mean they trouser less from virtually all of the contractors that work in the City Of London where the business's cannot claim back VAT

Could you explain why please? Maybe im half asleep today...

[TheCyclingProgrammer]

Any chance of posting links rather than cutting and pasting text, folks? Otherwise it's impossible for us to view the material in context, or indeed know if it's true or some garbage copied from Facebook

On the FRS: Tackling aggressive abuse of the VAT Flat Rate Scheme - technical note.

WTF? Why is the test limited to goods? Are services not a cost then?

[eek]

Could you explain why please? Maybe im half asleep today...

£100,000 income on FRS at 14.5% gave you £2400 additional income.

£100,000 income on FRS at 16.5% gives you £200 additional income.

[NickFitz]

WTF? Why is the test limited to goods? Are services not a cost then?

You seem to be expecting government policy to make sense. Good luck with that

[TheCyclingProgrammer]

Well it looks like we'll all be coming off the FRS then.

[PurpleGorilla]

£100,000 income on FRS at 14.5% gave you £2400 additional income.

£100,000 income on FRS at 16.5% gives you £200 additional income.

You're not down as other - 12%?

Sheeze!

[MrMarkyMark]

Could you explain why please? Maybe im half asleep today...

VAT exempt, some other industries have a fixed threshhold, less than the usual rate also.

https://www.gov.uk/guidance/rates-of...s-and-services

[SlipTheJab]

So a PS contractor in April will be inside IR35 and clobbered with 16.5% vat, ouch!

[WarringtonContractor]

is that right?

£100,000 income on FRS at 14.5% gave you £2400 additional income.

£100,000 income on FRS at 16.5% gives you £200 additional income.

If you earn/bill £100,000 and charge 20% VAT (£20,000), then you pass back to HMRC £14,500, leaving £5,500, after corp tax that's £4,400, not £2400

sorry if I am being stupid, but some help with your figures would be helpful

[WarringtonContractor]

So a PS contractor in April will be inside IR35 and clobbered with 16.5% vat, ouch!

Would that apply to contractors who contract through an agency or direct? or both?