Originally posted by Pondlife
where
x = VATable sales (remember to exclude bank interest)
y = VATable expenses (remember to exclude all payroll costs, and take the VAT off the expenses off before doing the calculation)
v = VAT rate (17.5%)
f = FRS VAT rate (usually 12 in the first year, and then 13% afterwards)
For most people (on the 13% flat rate) you are better off if your average VATable expenses are less than 12.7% of your pre-VAT gross sales.
I am an IT Monkey
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