Flat-rate VAT scheme: reclaiming apple purchase on different invoices but same order

[TheCyclingProgrammer]

I went through this with Apple years ago. The rules say a “single purchase” and my accountant was satisfied that multiple invoices with a single order reference and a copy of the original order would be more than enough evidence that it was a single purchase of goods. I reclaimed and never worried any more about it.

The total cost must be of capital goods though, consumables etc. and any services do not count.

These days it’s quite unusual to be on the FRS though.

[northernladuk]

Can you please briefly elaborate on how and which alternative would be better if I need to be VAT registered, just to make sure I understood your point as I didn't quite understand your post?

Get yourself an accountant.

[Lance]

Can you please briefly elaborate on how and which alternative would be better if I need to be VAT registered, just to make sure I understood your point as I didn't quite understand your post?

There is only one alternative to FRS.
it’s that standard VAT scheme.

something all contractors are on since they changed the % changed a few years ago.
The only contractors still on it have lazy accountants who don’t tell them, or no accountant….
when it was 14% it’s was worth a couple of grand a year.

[eek]

Can you please briefly elaborate on how and which alternative would be better if I need to be VAT registered, just to make sure I understood your point as I didn't quite understand your post?

Um, it’s vat. You track the VAT you collect, you track the VAT you pay out and pay the difference to HMRC.

[peterboroughsas]

given how the 16.5% rate works - it's 16.5% of turnover including VAT - I'm at a complete loss as to why you are on that scheme. It's simply not worth it. You keep 20p from ever £100 of ex-VAT income.

You need to turnover £10,000 a month ex-VAT just to cover the VAT from a £100 a month accountant bill,

Can you please briefly elaborate on how and which alternative would be better if I need to be VAT registered, just to make sure I understood your point as I didn't quite understand your post?

[eek]

given how the 16.5% rate works - it's 16.5% of turnover including VAT - I'm at a complete loss as to why you are on that scheme. It's simply not worth it. You keep 20p from ever £100 of ex-VAT income.

You need to turnover £10,000 a month ex-VAT just to cover the VAT from a £100 a month accountant bill,

[peterboroughsas]

You may be classed as a Limited Cost Trader if your business expenditure on goods is either:

• Less than 2% of your VAT inclusive turnover.
• Less than £1,000 per annum (if your costs are higher than 2%).

If you are classed as a Limited Cost Trader, then the fixed rate percentage to use will be 16.5% (15.5% in the first year of VAT registration)

We used to be between 12 and 14 but since the new rules came in it's jumped to 16.5% so not the slam dunk choice anymore. You need to get your accountant to check for you.

Do you know what rate you are claiming VAT at? If you've not had an accountants since 1st April 2017 you could still be on the wrong one and you really don't want to be doing that.

Thanks! I confirm I am on fixed rate Limited Cost Trader, (and the rate I've been paying is 16.5%).

[northernladuk]

Can you elaborate? the flat rate meets my needs as I don't have many expenses that would benefit from reclaiming VAT. Is there anything I am missing?

This is not for a company that is closing, actually revenue has just hit the point where I had to become VAT registered for this company.

You may be classed as a Limited Cost Trader if your business expenditure on goods is either:

• Less than 2% of your VAT inclusive turnover.
• Less than £1,000 per annum (if your costs are higher than 2%).

If you are classed as a Limited Cost Trader, then the fixed rate percentage to use will be 16.5% (15.5% in the first year of VAT registration)

We used to be between 12 and 14 but since the new rules came in it's jumped to 16.5% so not the slam dunk choice anymore. You need to get your accountant <cough> to check for you.

Do you know what rate you are claiming VAT at? If you've not had an accountants since 1st April 2017 you could still be on the wrong one and you really don't want to be doing that.

[peterboroughsas]

Got to ask, why are you still on Flat Rate? I thought it was better to come off it nowadays?

Can you elaborate? the flat rate meets my needs as I don't have many expenses that would benefit from reclaiming VAT. Is there anything I am missing?

This is not for a company that is closing, actually revenue has just hit the point where I had to become VAT registered for this company.

[malvolio]

If you’re closing your company why does it need a new computer?

It may not be this company he's closing. If it is, then by all means buy the computer but it won't be eligible for VAT or CT relief since it is clearly for personal use.

[Lance]

If you’re closing your company why does it need a new computer?

[northernladuk]

Got to ask, why are you still on Flat Rate? I thought it was better to come off it nowadays?

[northernladuk]

If you don't want to bother with an accountant then you need to do a bit more legwork yourself. This has been asked plenty of times on here so you can use google search to go find them. In Google type <keywords> site:forums.contractoruk.com

Here is the one for apple and there are at least 3 threads on the first page explaining it. There are also gotchas to look out for like software isn't included

https://www.google.com/search?q=appl...hrome&ie=UTF-8

[hobnob]

"a computer package (computer, printer, camera, scanner, speakers, and so on) bought as 1 package is one1 purchase of capital expenditure goods — if the package costs £2,000 or more (including VAT) then input tax can be claimed"
Flat Rate Scheme for small businesses (VAT Notice 733) - GOV.UK (www.gov.uk)

Personally, I'd say that one order counts as "bought as 1 package". However, I'm not an accountant, and your other thread said that you don't have one:
How to categorise these penalties in FreeAgent - Contractor UK Bulletin Board

So, the safest option would be to just pay the VAT.

[peterboroughsas]

I am on a flat-rate vat scheme and ordered a macbook and accessories in the same order which made the total for the order £2100. However, Apple issues an individual invoice for each item in the order because they were delivered separately and with each invoice being less than £2000.

I am wondering if that causes any issues in reclaiming the VAT for the order?