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Previously on "VAT FRS - dropping out when invoices > £150k"
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"when invoices > £150k" is not the same as "annual turnover limit of £150k" , you need to remove VAT from invoices to get the turnover figure
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Originally posted by ribble View PostI thought if you sub contracted work out and you are on FRS, the 2k vat claim back rule still applied?
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I thought if you sub contracted work out and you are on FRS, the 2k vat claim back rule still applied?
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I've just this week withdrawn from FRS on the advice of the accountant. Not because of the 225k limit but because I've just sub-contracted some work out and I will be paying way too much in VAT on the sub-contract to make staying in worthwhile.
You can always re-join FRS providing 12 months have passed since withdrawing if you need to get back on it.
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Originally posted by ChimpMaster View Post
I believed you would have to drop out of the scheme but according to HMRC's website (extract below) you can remain in it until your turnover reaches £225k.
HTH
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That's good news. Bloggs Ltd will just about breach £150k this year if the gig runs as long as I hope. Happy days
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I have updated the other thread to reflect this.
Thanks for pointing it out ChimpMaster.
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Originally posted by ChimpMaster View PostOnly because of what Wikir Man mentioned in another thread:-
http://forums.contractoruk.com/busin...-advice-2.html
So just searching for the truth!
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Originally posted by ChimpMaster View Post
So just searching for the truth!
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Originally posted by VectraMan View PostSadly, no. But what's the confusion? Seems pretty clear.
http://forums.contractoruk.com/busin...-advice-2.html
So just searching for the truth!
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VAT FRS - dropping out when invoices > £150k
Has anyone here been on the FRS but then ended up breaching the annual turnover limit of £150k?
I believed you would have to drop out of the scheme but according to HMRC's website (extract below) you can remain in it until your turnover reaches £225k.
Also awaiting response from my accountant.
From HRMC website:-
Who can join the Flat Rate Scheme
You can join the Flat Rate Scheme for VAT and so pay VAT as a flat rate percentage of your turnover if:
•Your estimated VAT taxable turnover - excluding VAT - in the next year will be £150,000 or less. Your VAT taxable turnover is the total of everything that you sell during the year that is liable for VAT. It includes standard, reduced rate or zero rate sales or other supplies. It excludes the actual VAT that you charge, VAT exempt sales and sales of any capital assets.
Generally you don't reclaim any of the VAT that you pay on purchases, although you may be able to claim back the VAT on capital assets worth more than £2,000 - see the section in this guide on claiming back VAT on capital assets for the rules and restrictions.
Once you join the scheme you can stay in it until your total business income is more than £225,000
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