VAT Return for end of Nov!!!

[Maslins]

Doesn't the old Scale Rate charge still apply if you reclaim the VAT on fuel or has that rule gone?
The charge used to pretty much knobble the benefit unless you used a lot of fuel.

Fuel scale charge (FSC) does still exist, but only if you reclaim VAT in respect of private fuel.

So if you use 40p/mile route for business miles, you can reclaim VAT on part of that cost (2p/mile and you won't be too far out) without worrying about FSC.

If on the other hand you have a company car, putting all motor costs through the business & reclaiming all the VAT on fuel, then you should then pay the FSC.

[Sally BFCA]

Many contractors do benefit from the FRS VAT Scheme.

HMRC have a calculator tool that will indicate if you will benefit.

It only takes a phone call to your VAT office to change over.

[TykeMerc]

Besides, you can reclaim the VAT element on any fuel you purchase even if claiming mileage.

And please, dont anyone say you cant because you can.

Doesn't the old Scale Rate charge still apply if you reclaim the VAT on fuel or has that rule gone?
The charge used to pretty much knobble the benefit unless you used a lot of fuel.

I agree if you have a fair bit of VATable expense the FRS isn't worth it, it's one of the judgement calls any business should make. I tend to rent rather than stay in VAT registered hotels when I'm away so FRS works for me reasonably well.

[Gonzo]

Surely most contractors should be on the flat rate VAT?

It depends on the input VAT.

The flat rate for contractors works if expenditure is low, but as soon as there is significant expenditure, on fuel and hotels for example, then it is usually better to be off the FRS.

EDIT - I see that Bolshie has already answered. Basically WHS.

[BolshieBastard]

Surely most contractors should be on the flat rate VAT?

Only if they have few if any expenses.

If you're working away from home and living in B&B its worthwhile not being on the FRS.

Besides, you can reclaim the VAT element on any fuel you purchase even if claiming mileage.

And please, dont anyone say you cant because you can.

[Spacecadet]

Surely most contractors should be on the flat rate VAT?

[ASB]

See here for details of the cash accounting regime (ie paying VAT based on receipts rather than invoices issued).

Bear in mind if you go for cash accounting it applies to purchases as well as sales, so you can't reclaim input VAT until you've actually paid for things, rather than just been invoiced.

Also, irrespective of whether cash or accrual account the company books have to be prepared on an accrual basis.

[Maslins]

See here for details of the cash accounting regime (ie paying VAT based on receipts rather than invoices issued).

Bear in mind if you go for cash accounting it applies to purchases as well as sales, so you can't reclaim input VAT until you've actually paid for things, rather than just been invoiced.

[SueEllen]

i thought it was invoices raised not banked

It's either.

If you do it one way don't change it.

Anyway if you have an accountant go and ask them.................

[css_jay99]

VAT is due on invoices that have been banked, ie funds are in your business account.

i thought it was invoices raised not banked

[Sockpuppet]

Whats the score here?

So you pay the VAT you have collected this quarter and then forward that on to the tax man??

Do you pay VAT on all invoices that have been PAID or issued??

Thanks

As Lisa has said. Go see an accountant. Its right that VAT is correct but its not the hardest subject in the world. Though get it wrong and you will get shafted.

[LisaContractorUmbrella]

Whats the score here?

So you pay the VAT you have collected this quarter and then forward that on to the tax man??

Do you pay VAT on all invoices that have been PAID or issued??

Thanks

Either is the simple answer but this really is something you should be discussing with your accountant as it is extremely important that your VAT returns are correct and are submitted on time.

[MikeC1408]

Depends how you do your accounting.

You can either pay on invoices raised or on actual payments received, it's up to you.

[kaiser78]

Whats the score here?

So you pay the VAT you have collected this quarter and then forward that on to the tax man??

Do you pay VAT on all invoices that have been PAID or issued??

Thanks

VAT is due on invoices that have been banked, ie funds are in your business account.

[joey122]

Whats the score here?

So you pay the VAT you have collected this quarter and then forward that on to the tax man??

Do you pay VAT on all invoices that have been PAID or issued??

Thanks