Reply to: VAT & Expenses/Allowances

[northernladuk]

Don't bother going on the FRS.

Ask your new accountant what is happening in April 2017.

The OP is working in the PS?

[SueEllen]

Hi,
Well, I've handed in my accounts to the accountant and he is now working through them prior to me making my first payment.

It is at this stage I've realised that maybe I'd be better off on the FRS. He registered me for 20% but said I could switch if it appeared to be better the otherway. Reason for this was that my company had a reasonably large expenses claim for the client over the first few months.

However, I now think that the savings made via the FRS would have exceeded any recovered amount on the 20% rate.

I'm going to see the accountant next week about maying. I'm going to ask him about which rate I should be on.

Is it possible to switch and backdate FRS to the begining of my first period or can it only be done going forward only? I've read conflicting articles online which seem to suggest various opinions from yes to no to depends on the person processing the request.


Thanks.

Don't bother going on the FRS.

Ask your new accountant what is happening in April 2017.

[Alan @ BroomeAffinity]

With respect, you should have listened to the posters telling you to get an accountant (or to be more precise a new accountant). If he never knew that you'd be better off on frs to start with then he's probably not for you. And as he's a family friend, you'd be keen to avoid mistakes by him that would make him a family friend no longer.

[Ted]

Hi,
Well, I've handed in my accounts to the accountant and he is now working through them prior to me making my first payment.

It is at this stage I've realised that maybe I'd be better off on the FRS. He registered me for 20% but said I could switch if it appeared to be better the otherway. Reason for this was that my company had a reasonably large expenses claim for the client over the first few months.

However, I now think that the savings made via the FRS would have exceeded any recovered amount on the 20% rate.

I'm going to see the accountant next week about maying. I'm going to ask him about which rate I should be on.

Is it possible to switch and backdate FRS to the begining of my first period or can it only be done going forward only? I've read conflicting articles online which seem to suggest various opinions from yes to no to depends on the person processing the request.


Thanks.

[SueEllen]

IMO don't mix friends as business the service you will receive will tend to be second rate because they can put you off, they can't paying customers and you all ways be at the end of the service queue.

Get a good Free agent accountant for peanuts and just get on with contracting.

WHS

Use your friendly accountant to explain complex matters to you as long as they are the type to use the caveat these things aren't "black and white" and stress it is their opinion.

[northernladuk]

IMO don't mix friends as business the service you will receive will tend to be second rate because they can put you off, they can't paying customers and you all ways be at the end of the service queue.

Get a good Free agent accountant for peanuts and just get on with contracting.

[Ted]

The only incomings to the company are my weekly payments from the customer. The only outgoings so far have been two expenses payments to myself.

So far I've not drawn down any salary or pension from the company.

I've these kept in a log - not that it is difficult to do.

My accountant, who is a family friend has not told me what to produce apart from the above log of ins and outs for the company.

Does anyone use TurboCash or gnuCash?

[Jessica@WhiteFieldTax]

I'm putting my forms into my acocuntant for the first VAT return. I'll be speaking to him about what he wants soon, but I was wondering what (if any) preparation do you guys do before handing them in?

I've got all my invoices, expenses etc in order. However, I've not created any spreadsheets correlating these. What if any of this work should do - or should be continually doing?


Thanks.

You should have had advice from your accountant at the outset about this. Check back, or ask them why not. It's quite fundamental, and a bit of a red light concern.

[northernladuk]

So you've no spreadsheet or online portal with all your finances nicely laid out? You've nothing to look at that tells you your current position at a glance? How do track your money in/out, you tax liabilities and how much profit you've got to divi out etc? Sounds like a recipe for disaster.

Have a think about swapping to an accountant that offers freeagent. Everything is done in the portal, Vat(ibncluding submission), all your expenses, bank feed, the whole 9 yards. Nothing for you to do but create invoices and log your expenses.

[Ted]

I'm putting my forms into my acocuntant for the first VAT return. I'll be speaking to him about what he wants soon, but I was wondering what (if any) preparation do you guys do before handing them in?

I've got all my invoices, expenses etc in order. However, I've not created any spreadsheets correlating these. What if any of this work should do - or should be continually doing?


Thanks.

[SueEllen]

Not sure what you class as a real person. Different approaches, but VAT course not for me thank you very much

How about someone you know who is an accountant? Though it did feel like I was going back to school.

Anyway they don't do the VAT courses any more it's webinars to save money and probably because they have retired off a lot of their trainers. You do miss out on having an ex-VAT inspector tell you all the things people try to claim for as a business expense, more things you can claim as legitimate business expenses, how your accounts etc are your responsibly NOT your accountant, admit stuff before HMRC catch you and try and sort it out. Oddly even though they are only suppose to be concerned with VAT they did go through other things.

[northernladuk]

well I can't bear to see you run for "most tedious poster" uncontested

Oh the irony.....

But thank you for your consideration.

[pr1]

Ahh. There you are. Wondered when you were going to pop up again...

well I can't bear to see you run for "most tedious poster" uncontested

[northernladuk]

You aren't obliged to reply to every post, and there are lots of qualified accountants on here promoting themselves who are usually happy to help

Ahh. There you are. Wondered when you were going to pop up again...

[pr1]

we are (in the main) contractors, and we are complete strangers so the advice he may get will be questionable at best.

You aren't obliged to reply to every post, and there are lots of qualified accountants on here promoting themselves who are usually happy to help