Flat Rate not for me?

[Alan @ BroomeAffinity]

The flat rate scheme involves quite a lot less admin than the normal way, so do consider that if the figures are a close call.

Which was the intention all along but HMRC didn't bargain on the savings to be made (IMHO)

[thunderlizard]

The flat rate scheme involves quite a lot less admin than the normal way, so do consider that if the figures are a close call.

[TykeMerc]

FRS, it's a no brainer.

Far from it, there are plenty of circumstances where being on the Fixed Rate Scheme would be a lousy idea.

[Platypus]

Not always - but almost certainly in the case of an IT contractor.

Only if the deliverables are destined for the EU.

Several folks on here do work for US companies, so no VAT on those invoices.

[YHB]

Ok Ok I own up I am not an IT Contractor...............

I am a procurement Contractor, but you guys are so nice, I hope I can stay?

[Sockpuppet]

FRS, it's a no brainer.

... for most people.

I'm not on FRS then again I have a lot of VAT able outgoings.

[pleomax]

Ok Ok I own up I am not an IT Contractor...............

I am a procurement Contractor, but you guys are so nice, I hope I can stay?

[Alan @ BroomeAffinity]

FRS, it's a no brainer.

Not always - but almost certainly in the case of an IT contractor.

[YHB]

was a plea the other day to Gordon Brown by one of the big business organisations (CBI?) for the VAT to be reduced to 13% ish help the country. Would be interesting

[Turion]

FRS, it's a no brainer.

[pleomax]

There was a good link posted here a while back which detailled the flat rate %'s. I can not for the life of me find it now

Can you apply for normal VAt then decide to go flat rate and change, I got confussed last night reading the HMRC web site and had far too much falling down juice to understand. Just asking for peoples experience's.

[Alan @ BroomeAffinity]

Even if you are on FRS you can claim VAT back on capital expenditure over £2,000.

[TheFaQQer]

You've got it in one - the question you need to consider is how much your VAT-able expenses are compared with the VAT that you will be charging on invoices. If you are better off, then do it; if not,don't.

Remember you get a 1% discount in your first year of VAT registration too if you move onto FRS.

[pleomax]

I have been looking to get set up for VAT, I am sure I will be just under the limit so thought I may as well get it doen just in case.

Offering my services I think it is 13%, but doing this I would loose out on claiming the VAT back for my IT hardware/Software and other business purchases.

Is that the right way of thinking? or should i just pocket the flat rate and be happy?