Originally posted by Alan @ BroomeAffinity
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Autumn statement - end of VAT flat rate scheme?
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"why ride a vespa when you can push a lambretta?"
As I look ahead, I am filled with foreboding; like the Roman, I seem to see "the River Tiber foaming with much blood." -
Originally posted by Eirikur View Postyou clearly don't understand it or are bad a maths or both
if you're on flat rate you receive 2000 VAT from the agency or your client and you pay 1650 to HMRC VAT
so you keep 350 in your pocket over which you pay 20% corporation tax which leave you with 280 Nett in your pocket
If you're not on a flat rate you pay the full 2000 to HMRC minus whatever VAT you paid to others and zero in your pocket so to go on full VAT rate is only profitable if you're expenses are £1400+VAT or over else you should stay on flat rate.
Edit: 5 times, the answer is 5 times.Comment
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Originally posted by TheCyclingProgrammer View PostHow many times do you need to be told you're wrong and have the correct calculation shown to you before you realise you're wrong?See You Next TuesdayComment
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Originally posted by Lance View Posthe admits to being wrong on the previous page. Took a while mind'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by Eirikur View Postyou clearly don't understand it or are bad a maths or both
if you're on flat rate you receive 2000 VAT from the agency or your client and you pay 1650 to HMRC VAT
so you keep 350 in your pocket over which you pay 20% corporation tax which leave you with 280 Nett in your pocket
If you're not on a flat rate you pay the full 2000 to HMRC minus whatever VAT you paid to others and zero in your pocket so to go on full VAT rate is only profitable if you're expenses are £1400+VAT or over else you should stay on flat rate.Comment
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I've just calculated and my net profits are down £7200pa now due to the new flat rate scheme. Which equates to circa 5k a year net in my pocket - which is a lot of money.
This with the increased in divi taxes mean that there is less than £100 a month difference between the a LTD and umbrella.
With the looming IR35 policy changes, it's not worth it anymore. The heydays are over.
I can't see our accountants rushing to disclose this information...Comment
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Originally posted by blackeye View PostI've just calculated and my net profits are down £7200pa now due to the new flat rate scheme. Which equates to circa 5k a year net in my pocket - which is a lot of money.
This with the increased in divi taxes mean that there is less than £100 a month difference between the a LTD and umbrella.
With the looming IR35 policy changes, it's not worth it anymore. The heydays are over.
I can't see our accountants rushing to disclose this information...merely at clientco for the entertainmentComment
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Wish people would leave the number crunching off the thread. Not one person has got it right yet.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by blackeye View PostI've just calculated and my net profits are down £7200pa now due to the new flat rate scheme. Which equates to circa 5k a year net in my pocket - which is a lot of money.
This with the increased in divi taxes mean that there is less than £100 a month difference between the a LTD and umbrella.
With the looming IR35 policy changes, it's not worth it anymore. The heydays are over.
I can't see our accountants rushing to disclose this information...Comment
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Originally posted by northernladuk View PostWish people would leave the number crunching off the thread. Not one person has got it right yet.
Am I correct?Comment
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