Flat Rate VAT

[Bluebird]

yep, turnover has to be less than £150k to join.

I think you are forced to leave if at the year end you have crossed the threshold [ which is not £150k turnover, but £225k tax-INCLUSIVE turnover] , but I don't think they can apply it retrospectivly.

You can leave the scheme at the end of any vat accounting period, but you can't then rejoin for another 12 months.

So unless your sub contracting is an ongoing thing I'd try and hang in there unless you are forced out.

[Limited]

Good point - didn't think of that. Is the limit still 150,000?

I've been quite busy since April and looking busy until the end of the year, but don't know exactly what my turnover will be over a whole year.

How would that work? Is it based on a company's year or tax year or any random 12 month period?

Can it changed retrospectively?

thanks

[Bluebird]

Due to too many commitments and a bit of laziness I'm getting a subcontractor to take on one of my projects.

I need to consider whether it would make sense to come off the flat rate vat scheme. Is there an easy way to work out the point where that would make sense? I guess it's if the VAT paid out to subcontractor would exceed 2 (or is it 3)% of turnover for the year ahead. Does that sound right?

Can I make the decision part way through a quarter so I can see how much it's likely to cost, and then still apply normal vat rules for the whole of that quarter?

thanks for any help

isn't FRS also depend on turnover, in which case taking on a subbiee may push you over that limit and the question if/when is no longer relevant?

[Limited]

Due to too many commitments and a bit of laziness I'm getting a subcontractor to take on one of my projects.

I need to consider whether it would make sense to come off the flat rate vat scheme. Is there an easy way to work out the point where that would make sense? I guess it's if the VAT paid out to subcontractor would exceed 2 (or is it 3)% of turnover for the year ahead. Does that sound right?

Can I make the decision part way through a quarter so I can see how much it's likely to cost, and then still apply normal vat rules for the whole of that quarter?

thanks for any help