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Reply to: VAT Tax At 31 Dec

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Previously on "VAT Tax At 31 Dec"

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  • kryten22uk
    replied
    Ok, fair enough. My work is continuous, so i'll be invoicing in Jan, as I am slightly better off under the old VAT/FRS rates than these recent interim ones.

    Leave a comment:


  • malvolio
    replied
    Originally posted by kryten22uk View Post
    That article totally lost me. If I draw up an invoice on 1-Jan, then 1-Jan is the tax point and hence should be 17.5% VAT charged to client, and the new related FRS rate paid to HMRC. Why is that wrong?
    It isn't. Assuming you are invoicing for a continuing supply of services.

    But not everyone will be. If you're selling something discrete like a website design or a Printer, the tax point is the date of delivery, not the date of the invoice.

    Also, and what possibly wasn't too clear, if you've invoiced in December and do the VAT return in January, your repayment has to be made at the December rate, not the January one. Which is still about aligning Tax Points, of course.

    Leave a comment:


  • kryten22uk
    replied
    That article totally lost me. If I draw up an invoice on 1-Jan, then 1-Jan is the tax point and hence should be 17.5% VAT charged to client, and the new related FRS rate paid to HMRC. Why is that wrong?

    Leave a comment:


  • Jeebo72
    replied
    I took a holiday at the last change. Will do this time too. Problem solved

    Leave a comment:


  • malvolio
    replied
    And the key point for FRS people is that you have to apply the correct percentages; you can't apply 2010 repayment percentages to 2009 income and vice versa.

    Leave a comment:


  • centurian
    replied
    Originally posted by joey122 View Post
    This says that flat rate will return to Nov 2008

    Does anyone know what the rate was at that time?
    13%

    I recall when it went down, I carefully planned when I would issue the invoices. I got one in on the Friday afternoon and slightly delayed issuing the following two weeks. This made no difference to the return amount as it is based upon service provision date, but it meant that the bank account dates matched the period exactly, so a lot easier to cross check and validate.

    Not sure whether the same will work this time around as it occurs on a different month.

    The key part is that all "service provisions" for this year are issued at 15% and flat rated at 11.5%, regardless of when the invoices are issued.

    Leave a comment:


  • joey122
    replied
    Originally posted by malvolio View Post
    This says that flat rate will return to Nov 2008

    Does anyone know what the rate was at that time?

    Leave a comment:


  • malvolio
    replied
    No. Have a read of this - http://www.lpwcs.com/wordpress/2009/...ats-the-point/

    Leave a comment:


  • joey122
    started a topic VAT Tax At 31 Dec

    VAT Tax At 31 Dec

    I am on flat rate and am now thinking about the dec invoice.

    Is it advantageous for me to send my invoice to the agency on the 1 Jan and charge 17.5% rather then send this out on the 31 Dec and charge only 15%

    Does the flat rate scheme stay at 10.5% even next year???

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