Reply to: Limited Company Flat rate Vat

[TheFaQQer]

and dont forget, gross charged means you pay 14.5% on the invoice amount + vat

If you are in your first year of VAT registration, you also get a 1% discount on that rate as well.

[Waldorf]

and dont forget, gross charged means you pay 14.5% on the invoice amount + vat


which catches a lot of noobs out

so if your invoice is for £1000, you charge £200 vat = 1200

you pay the vat man 14.5% of 1200 = £174

then you pay ct on the £26 profit

which is why the frs only makes a you few hundred a year

But this is 2.6% - so whilst that sounds small change, if you are charging out at £80K, then this is £2080 a year - quite a tidy sum for doing nothing.

[macgabhr]

and dont forget, gross charged means you pay 14.5% on the invoice amount + vat


which catches a lot of noobs out

so if your invoice is for £1000, you charge £200 vat = 1200

you pay the vat man 14.5% of 1200 = £174

then you pay ct on the £26 profit

which is why the frs only makes a you few hundred a year

Thanks EternalOptimist that's exactly the answer I was looking for!

[EternalOptimist]

Yes, you do pay CT on the difference between the gross 20% VAT charged to the client and the, for example, 14.5% of gross charged for the FRS.

and dont forget, gross charged means you pay 14.5% on the invoice amount + vat


which catches a lot of noobs out

so if your invoice is for £1000, you charge £200 vat = 1200

you pay the vat man 14.5% of 1200 = £174

then you pay ct on the £26 profit

which is why the frs only makes a you few hundred a year

[Scrag Meister]

Yes, you do pay CT on the difference between the gross 20% VAT charged to the client and the, for example, 14.5% of gross charged for the FRS.

[Ruprect]

Yes

No

Maybe

[EternalOptimist]

FRS will make you a couple of hundred quid a year, plus its slightly easier to administer.
Proper contractors dont do expenses


hth

[macgabhr]

And I answered your question you ungrateful dumbass, next time say thank you!

Answering with a simple yes or no isn't exactly worthy of a thanks, you have no reasoning for answer so justify it and then i'll thank you asswipe.

[TheFaQQer]

It is in General

That just means it's with the rest of the slurry

[MarillionFan]

It is in General

WHS

It's full of sh1t in here.

[AtW]

(and this is an IT forum not an agricultural one)

It is in General

[northernladuk]

BAcially vat is calculated at 20% but for certain contractors vat may be paid at a lower rate for example 11% for agricultural services. So therefore if you are registered for vat you can cliam back the surplus of inthis case 9% but I want to know is this subject to corporation tax because technically it is profit for the company?

Yes

(and this is an IT forum not an agricultural one)

[northernladuk]

And I answered your question you ungrateful dumbass, next time say thank you!

OMG LOL!!! Why can't we say that in the other forums

[SimonMac]

BAcially vat is calculated at 20% but for certain contractors vat may be paid at a lower rate for example 11% for agricultural services. So therefore if you are registered for vat you can cliam back the surplus of inthis case 9% but I want to know is this subject to corporation tax because technically it is profit for the company?

And I answered your question you ungrateful dumbass, next time say thank you!

[macgabhr]

So you can't do it? Ok. No problem

BAcially vat is calculated at 20% but for certain contractors vat may be paid at a lower rate for example 11% for agricultural services. So therefore if you are registered for vat you can cliam back the surplus of inthis case 9% but I want to know is this subject to corporation tax because technically it is profit for the company?