Leave VAT Flat Rate when mainly just Travel Expenses reclaimable?

[northernladuk]

In true NLUK fashion I asked my accountant

That's my boy!!

[SteelyDan]

In true NLUK fashion I asked my accountant who mentioned I would be marginally better off by coming off it but to weigh it up against the extra admin burden. His calculations didn't include the VAT I would be saving off his fees, technical subscriptions, insurances never mind impending purchases like a new mobile phone and other tech. As for the extra burden I've worked out he's talking about himself as all I do is fill a spreadsheet . In the words of Duncan Banatyne, I'm out!!

I'm staying on FRS as I really just cba about the hassle of claiming this, that, & the other, & increased admin. Benefit will be less than previous [given], yes, but really CBA.

[SlipTheJab]

In true NLUK fashion I asked my accountant who mentioned I would be marginally better off by coming off it but to weigh it up against the extra admin burden. His calculations didn't include the VAT I would be saving off his fees, technical subscriptions, insurances never mind impending purchases like a new mobile phone and other tech. As for the extra burden I've worked out he's talking about himself as all I do is fill a spreadsheet . In the words of Duncan Banatyne, I'm out!!

[SeanT]

To summarise the information so far for you;

If you're classed as a "limited" cost trader, you're not actually allergic to receipts, you don't do your own accounts from cover to cover, and you aren't in the first year of FRS with the discount, leave.

[SueEllen]

I was maybe not specific enough in my questions or you both jumped on me because you thought I was asking the same questions.

I comprehend that I WILL be a Limited Cost trader and I wasn't asking if travel expenses can be included in the vat inclusive expenditure on goods.

I wanted to know if I had calculated the reclaimable VAT correctly if I was NOT on the Flat rate scheme, as I haven't needed to do this before

In general posters don't check others calculations for them. However on the rare occasion they do you are more likely to get a response in the week when posters are bored at their ClientCo. Then if another poster can be bothered they will check that first poster's calculations and correct them if necessary.

In fact as a rule if you want to ask accounting questions ask them on a weekday during normal working hours as some of the resident accountants will answer them. However they will NOT do your calculations for you.

A lot of those threads don't go into the specifics of how to reclaim the VAT on travel expenses and they only contain little nougats of real information

That's because the information is available via HMRC webpages, which you can find by Googling. In addition some UK accountancy firms have on their webpages information on how to do things but again you will have to Google for them.

Yes you are better at the search though! But having to wade through multiple pages of multiple threads is not easy and I have done this

It is a good skill for anyone in IT to have as it saves you having to reinvent the wheel.

This post is useful for newbies searching

[stphnstevey]

I can obviously search better than you because I found these posts:

post 47

post 82

post 90


post 113

post 136

post 153

post 163

I could find more. These are actually all in the same thread. The thread also actually explains what are goods and what are services a few times. So if you read the thread and understood it all your questions would have been answered more than once.

I was maybe not specific enough in my questions or you both jumped on me because you thought I was asking the same questions.

I comprehend that I WILL be a Limited Cost trader and I wasn't asking if travel expenses can be included in the vat inclusive expenditure on goods.

I wanted to know if I had calculated the reclaimable VAT correctly if I was NOT on the Flat rate scheme, as I haven't needed to do this before

A lot of those threads don't go into the specifics of how to reclaim the VAT on travel expenses and they only contain little nougats of real information

Yes you are better at the search though! But having to wade through multiple pages of multiple threads is not easy and I have done this

[SueEllen]

I did search and I read through multiple posts on leaving the Flat Rate system - most of them not specifically mentioning travel expenses, which was what I was mainly interested

Jeeze, I'm surprised anyone post here if that's the sort of response you get

I can obviously search better than you because I found these posts:

post 47

post 82

post 90


post 113

post 136

post 153

post 163

I could find more. These are actually all in the same thread. The thread also actually explains what are goods and what are services a few times. So if you read the thread and understood it all your questions would have been answered more than once.

[stphnstevey]

Sure, we will all just repost what's already been said many times before in the dozen or so threads on the subject in the past month just for you, because you're unable to use the search function.

I did search and I read through multiple posts on leaving the Flat Rate system - most of them not specifically mentioning travel expenses, which was what I was mainly interested

Jeeze, I'm surprised anyone post here if that's the sort of response you get

[mudskipper]

Yes, you'll be better off on the standard scheme, as will just about everyone. But there is more work in collecting receipts etc - to reclaim VAT on mileage, you have to keep petrol receipts for example. So it depends whether you think that it's worth it for a few hundred pounds.

[TheCyclingProgrammer]

Sure, we will all just repost what's already been said many times before in the dozen or so threads on the subject in the past month just for you, because you're unable to use the search function.

[stphnstevey]

This has been discussed on many threads so I suggest you search and find them.

If you wish to discuss your own situation talk to your accountant.

Oh and you have forgot to add in training and capital expenditure like laptops and mobile phones, which in the standard scheme you can claim the VAT back for.

Nice friendly forum this is! - standard response to most threads = go and search or speak to your accountant. Do people really think that is helpful?

I did search and I read through multiple posts on leaving the Flat Rate system - most of them not specifically mentioning travel expenses

Why would somebody post on a forum if they could just speak to an accountant? Or even why have this board on accountancy issues if that's the standard response? Just a sticky, don't ask any questions, look them up or ask your accountant!, this board is not for asking questions

I pay my accountant for advice. In this situation, its fairly straight forward, so I was asking others experience, particularly of travel expenses

I didn't FORGET training and capital expenditure, I have very little

[SueEllen]

This has been discussed on many threads so I suggest you search and find them.

If you wish to discuss your own situation talk to your accountant.

Oh and you have forgot to add in training and capital expenditure like laptops and mobile phones, which in the standard scheme you can claim the VAT back for.

[stphnstevey]

I am trying to work out whether its best to remain in Flat Rate system or leave
I think it's obvious to leave, but wanted to check my understanding, particularly of VAT reclaimable on Travel Expenses, which is the bulk of my reclaimable VAT

My accountant fees are fairly minimal at £600 (including VAT)/yr as I do everything but produce the accounts = £100

The following expenses are claimable business expenses, I have no doubts in that
However I have always been on the Flat Rate VAT and not normally reclaimed VAT previously in the standard way

In terms of VAT reclaimable on Travel Expenses, does this seem about right?
- VAT is not normally charged on Train and Air fares, which form a good proportion of my travel expenditure
- I pay myself 45p/m but I believe only the VAT fraction is recoverable, for me of the 45p, 9p/m is for fuel so on about 10k miles = £150
- Subsistence approx £7 meal and averaging 4 meals per working weeks (48) = £268

So about £520 in reclaimable VAT

I make the it on the Flat Rate scheme I would get £200 for every 100k of turnover

So seems marginally better to leave the Flat Rate system?