Reply to: Changes in Flat Rate Tax Scheme 1/4/17

[MeMeMe1966]

Did they have the Windows gig "in hand"?

I've just read the guidance and your right! That makes no sense, its a circular argument to say you can't get tax relief in investing in new skills to get your next gig when technology is always evolving. That's like saying you can't do marketing to grow your business or shops can't get tax relief on expenses to bring out new product lines?

Also if you did try to move into the new technology from within your current gig then you'd start running into looking like an employee wouldn't you?

That's just silly.

[The Spartan]

The whole retraining thing does baffle me as to whether it's allowed or not as in I.T. roles evolve all the time, like in testing there has been a shift to Developers in Test and now this is partially evolving in to DevOps a certain degree of training/retraining is needed but as to what is allowed it's beyond me.

[MrMarkyMark]

So DOS progammers weren't allowed to re-train in windows for their next gig?

Did they have the Windows gig "in hand"?

[MeMeMe1966]

Training for engagements in hand is what is allowable as far as I'm aware.

So DOS progammers weren't allowed to re-train in windows for their next gig?

oops I meant getting tax relief on new technology training unrelated to your current engagement but related to your business.

[MrMarkyMark]

You sure the training is allowable? Adding new software skills is a bit of a grey area.

Training for engagements in hand is what is allowable as far as I'm aware.

[hugebrain]

Well if I'm going to be 4K out of pocket then why wouldn't I spend it on something I may use rather than give it away? The 800 isn't really part of my motivation.

I don't understand why this isn't the default position, am I missing some technicality that would prevent this?

Exactly. If you are offered £4000 worth of free stuff why wouldn't you take it?

I'd even do it without the advantage that the nasty public sector simultaneously lose £4000.

The accountants can work out the details of whether we have to buy software, silver bars or whatever.

[northernladuk]

You sure the training is allowable? Adding new software skills is a bit of a grey area.

[MeMeMe1966]

So to save £4K you plan to pay £3.2k a year on software (and it has to be a physical package not a download), so you save £800?

Well if I'm going to be 4K out of pocket then why wouldn't I spend it on something I may use rather than give it away? The 800 isn't really part of my motivation.

I don't understand why this isn't the default position, am I missing some technicality that would prevent this?

[SueEllen]

So to save £4K you plan to pay £3.2k a year on software (and it has to be a physical package not a download), so you save £800?

I thought this was suppose to be the professional forums not General.

[TheCyclingProgrammer]

A CD is not a service:


https://www.amazon.co.uk/d/Software/...CD+objective-c


and I genuinely don't understand how this is fraud? I would use this in my business and I'd rather have some benefit then turn the money over to the tax-man.

So to save £4K you plan to pay £3.2k a year on software (and it has to be a physical package not a download), so you save £800?

[MeMeMe1966]

Training is services not goods.

The VAT man has a fraud department so I wouldn't try it.

A CD is not a service:


https://www.amazon.co.uk/d/Software/...CD+objective-c


and I genuinely don't understand how this is fraud? I would use this in my business and I'd rather have some benefit then turn the money over to the tax-man.

[MrMarkyMark]

Training is services not goods.

The VAT man has a fraud department so I wouldn't try it.

And again people wonder why people we are tax avoiding scum

[SueEllen]

Hi,

I can't stand the thought of handing over an extra 4K.

So 160k turnover at 14% = 22.4k

turns into 160K turnover at 16.5% = 26.4k

Difference in my pocket (obvs less corp tax is 4K)

I have virtually no input vat that i can think of, so i'm not going to be recouping this 4K hit by moving onto the standard method.

If I buy 3.2K worth of software then I hit the 2% vatable expenses and at least I've received some benefit from the change. I'm thinking that software training packages to skill up can be wholly and exclusively part of the business? i think it would count as relevant goods and i believe its vatable?

is there a flaw in this?

Training is services not goods.

The VAT man has a fraud department so I wouldn't try it.

[MeMeMe1966]

Tell me the flaw in this plan please

Hi,

I can't stand the thought of handing over an extra 4K.

So 160k turnover at 14% = 22.4k

turns into 160K turnover at 16.5% = 26.4k

Difference in my pocket (obvs less corp tax is 4K)

I have virtually no input vat that i can think of, so i'm not going to be recouping this 4K hit by moving onto the standard method.

If I buy 3.2K worth of software then I hit the 2% vatable expenses and at least I've received some benefit from the change. I'm thinking that software training packages to skill up can be wholly and exclusively part of the business? i think it would count as relevant goods and i believe its vatable?

is there a flaw in this?

[SueEllen]

I'd be interested to know if anyone is switching away from the flat rate scheme in light of these changes.

I have already switched due to how my VAT quarters are aligned.