If VAT rate changes

[manstein]

I always thought the FRVS was set at a certain figure per industry / profession so that you could forego the hassle of the more complicated claiming back system.

So, for example, a farmer may be on 7% FRVS as you would expect him to have a lot of stuff to claim back, whereas an IT professional may be on 13% as he would have less to claim.

I can't see how the government can justify cutting the base rate of VAT without making a commensurate cut in our FRVS or it would make a mockery of the raison d'etre of the whole scheme.

So I conclude there will definitely not be any reduction in our registered Flat Rate, so looks like we will lose 1-2% of our income.

Am I the only one who thinks it strange that one of the central planks of government policy to get us out of a hole of our own making by overbowering is to give incentives to spend more (for a lot of people most probably on credit cards with huge interest rates)?

I can understand tax cuts but not a cut on VAT, which will save a little on fuel bills (which rose 35% this year?) and other essentials (is the other main outgoing food still 0% rated, and I don't think we pay VAT on other main expenditure mortgage?) but I can't really see this saving people money.

Just heard on the radio Canada tried a similar thing earlier this year and it failed miserably.

[Peoplesoft bloke]

.............
Am I the only one who thinks it strange that one of the central planks of government policy to get us out of a hole of our own making by overbowering .......

Are you Jonafon Woss?

[manstein]

Are you Jonafon Woss?

I need to do something to fill up my 3 months and I'm sure BT are monitoring my phone.

[expat]

...Please don't me that some systems have the Vat Rate hardcoded in ?

That doesn't make sense, and any programmer who hardcoded such a variable figure needs to be shot for idiocy.

Absolutely. Even back in the 1970s (yes) when programming was real work and memory cost money, we coded at least 6 VAT rate codes into every program.

VAT-free
0% (same result as above but legally different)
low rate
high rate
+2 more because you never knew what the govt would do.

[kryten22uk]

-deleted-

[GrievousAngel]

From reading the published report, it looks like HMRC are going to reduce the flat rate scheme sectoral rates.

4.12 The VAT Flat Rate Scheme allows businesses with a turnover less than £150,000 to simplify their VAT accounting.
Alongside the temporary reduction of the standard rate of VAT, the Government will also amend the sectoral rates of the VAT Flat Rate Scheme in line with the standard rate reduction, allowing 180,000 small businesses in the scheme to benefit from the rate reduction

Although no mention of timescales.

Cheers,
GA

[TheFaQQer]

Keep up - http://forums.contractoruk.com/gener...-ammended.html

[GrievousAngel]

Keep up - http://forums.contractoruk.com/gener...-ammended.html

[lambrini_socialist]

From reading the published report, it looks like HMRC are going to reduce the flat rate scheme sectoral rates.

4.12 The VAT Flat Rate Scheme allows businesses with a turnover less than £150,000 to simplify their VAT accounting.
Alongside the temporary reduction of the standard rate of VAT, the Government will also amend the sectoral rates of the VAT Flat Rate Scheme in line with the standard rate reduction, allowing 180,000 small businesses in the scheme to benefit from the rate reduction

Although no mention of timescales.

Cheers,
GA

i love your records Grievous Angel

[dang65]

Something to do with the spin of the Earth. Like the way toilets work backwards in Australia.

Which any self-respecting geek would know is an urban myth, of course.

[Assuming you're referring to water spinning in different directions. For all I know, toilets may well "work backwards" in Australia. Doesn't sound very pleasant though if they do.]