VAT Rate Question

[thelace]

And it's still an extra percent in the 1st year

[Archangel]

I used to be £40 a week better off when VAT was 17.5%, now it's reduced by 2.5% and the new flat-rate thing is 13.5% (i.e. only 1.5% less, not 2.5% less), I'm out of pocket!

But I suppose it's all free money and I save on my (few) purchases.

Sigh.

Its 13.5% of the Gross and 17.5% of the Net. So you are only a fraction worse off.

I hope you don't do your own VAT returns!

[rl4engc]

I used to be £40 a week better off when VAT was 17.5%, now it's reduced by 2.5% and the new flat-rate thing is 13.5% (i.e. only 1.5% less, not 2.5% less), I'm out of pocket!

But I suppose it's all free money and I save on my (few) purchases.

[Carrington Accountancy]

VAT Invoicing

Regardless of which VAT scheme you are on, you should invoice clients at the standard rate of 15% (all invoices dated 1 December 2008 onwards).
The Flat Rate scheme percentages are only applied when calculating the liability payable to Customs.

It is worthtwhile investigating whether it would be beneficial to apply for the VAT Flat Rate Scheme as there are potential savings available, which are dependent on your business expenses.

[Bunk]

Just use the normal 15% rate. It sounds like you're thinking of the various rates on the flat-rate scheme, but they only change what you pay to the VAT man anyway, not what you charge on your invoice, that's always 15% (or whatever they change it to next )

[pmeswani]

I'm VAT registered, but NOT under the flat rate scheme. I thought there were different VAT rates for different categories of work, and was trying to find them on HMRC's site without success. Now I'm not sure if this is only relevant to flat-rate?
I need to invoice someone for Software Consultancy... do I just use the standard 15% rate or is there a special rate?

This is the first VAT-able invoice I've sent, since I normally work with clients outside the EU...

I am assuming that both companies (yours and the Software Consultancy's) are in the UK. If that is the case, you would need to charge VAT at normal rate, unless the company is a registered charity, in which case they would be VAT exempt.

[d000hg]

I'm VAT registered, but NOT under the flat rate scheme. I thought there were different VAT rates for different categories of work, and was trying to find them on HMRC's site without success. Now I'm not sure if this is only relevant to flat-rate?
I need to invoice someone for Software Consultancy... do I just use the standard 15% rate or is there a special rate?

This is the first VAT-able invoice I've sent, since I normally work with clients outside the EU...