VAT Flat rate and taking on empoyees

[Danbro]

Danbro Accounting Ltd

I have the opportunity to take on some extra fixedprice work. But there may be too much for me to handle so was considering subbing some of it out to another Ltd contractor who is also vat registered

If I am on the flat rate scheme it seems I am going to lose out out to the tune of 12% of the original income. Is that right.

Is the flat rate scheme a no-no for those with employees or subbies??

Hi Steve,

You will have to do the calculations but if you are going to subcontract the work out you will almost certainly be out of pocket, you can de-register from the flat rate scheme before you start to subcontractor, remember you cant rejoin the scheme for a year after this.

Flat rate would be fine with employees as they would not be charging VAT for salaries.

Thanks

Neil

[SteveV]

I have the opportunity to take on some extra fixedprice work. But there may be too much for me to handle so was considering subbing some of it out to another Ltd contractor who is also vat registered

If I am on the flat rate scheme it seems I am going to lose out out to the tune of 12% of the original income. Is that right.

Is the flat rate scheme a no-no for those with employees or subbies??