Those that moved off FRS Those that moved off FRS
Page 1 of 2 12 LastLast
Posts 1 to 10 of 15
  1. #1

    Fingers like lightning

    SteelyDan's Avatar
    Join Date
    Nov 2011
    Posts
    598

    Default Those that moved off FRS

    I know many on here intended switching to 'full VAT' when the FRS % changed to a 'one-size-fits-all' rate of 16.5%.
    I didn't; I stayed on FRS [less beneficial these days I know], but was curious to know how those who did switch have found it in comparison.

    Is it a 'pain in the A' [paperwork, calculations, etc.], or has the transition gone OK without any worries? Do feel better off having switched, or do you have regrets? Not a survey obviously, but just curious tbh as it's Friday afternoon...
    Clarity is everything

  2. #2

    More time posting than coding


    Join Date
    May 2014
    Posts
    208

    Default

    I find it fairly painless. I only reclaim big ticket items like hotels though rather than all the small stuff.

    It's an extra box to fill in for each VAT transaction which with NW is no problem, and more than offset due to spending between 250-400 a week on hotels, and it automatically doing the VAT on the mileage claims too.

  3. #3

    I live on CUK

    SueEllen's Avatar
    Join Date
    Nov 2005
    Location
    in the Park
    Posts
    29,560

    Default

    The biggest hassle for me was asking retailers for VAT invoices/receipts. Out of the five I had to ask four took 48 hours max to provide them. The fifth I had a one month argument before they relented and just paid the VAT back to me so I could forward it to HMRC. Funnily enough because I knew I had changed schemes I asked them as soon as I got the goods.
    "You’re just a bad memory who doesn’t know when to go away" JR

  4. #4

    Contractor Among Contractors


    Join Date
    Sep 2009
    Location
    Tunbridge Wells
    Posts
    1,744

    Default

    Our clients have been give or take 50:50 leave FRS vs stay. Virtually all staying on it will be worse off, know that, but feel it'll only be by a modest sum and they'd prefer that rather than have to check every business purchase they make to see whether it was VATable or not and ensure they enter correctly onto FreeAgent.

    It's not difficult, but can be a pain, especially if you do want to do it for every transaction. As Sue Ellen points out, often for smaller purchases you won't get a formal VAT receipt unless you specifically ask for one...and doing so typically means waiting for a manager to come out, grumble lots, before cobbling something together.

  5. #5

    Super poster


    Join Date
    Jan 2009
    Location
    Near London, UK
    Posts
    4,278

    Default

    Painless for me, other than having to split my FreeAgent VAT periods and file a combined return via the HMRC website.

  6. #6

    I live on CUK

    SueEllen's Avatar
    Join Date
    Nov 2005
    Location
    in the Park
    Posts
    29,560

    Default

    Quote Originally Posted by Maslins View Post
    As Sue Ellen points out, often for smaller purchases you won't get a formal VAT receipt unless you specifically ask for one...and doing so typically means waiting for a manager to come out, grumble lots, before cobbling something together.
    Actually it was a larger purchase I had an issue getting a receipt for. All the small suppliers were happy when asked to provide a receipt and some of the delay was due to them being on a different time zone.
    "You’re just a bad memory who doesn’t know when to go away" JR

  7. #7

    Should post faster


    Join Date
    Mar 2017
    Location
    Reading
    Posts
    177

    Default

    Quote Originally Posted by SteelyDan View Post
    I know many on here intended switching to 'full VAT' when the FRS % changed to a 'one-size-fits-all' rate of 16.5%.
    I didn't; I stayed on FRS [less beneficial these days I know], but was curious to know how those who did switch have found it in comparison.

    Is it a 'pain in the A' [paperwork, calculations, etc.], or has the transition gone OK without any worries? Do feel better off having switched, or do you have regrets? Not a survey obviously, but just curious tbh as it's Friday afternoon...
    If you use accounting software such as Xero or FreeAgent, you should not notice the difference. You will just have to enter the VAT amount per your receipts in the software. If you don't get a vat invoice to cover the vat, you will just miss out on the vat claim. It is piece of mind to be on the standard scheme. If you need to make a bigger purchase, you will know that you can claim the vat. On the FRS you can also claim vat for capital items but you need to spend over £2k.

  8. #8

    Contractor Among Contractors


    Join Date
    Aug 2015
    Posts
    1,001

    Default

    I stayed on FRS because I'm in a contract local to where I live so no accommodation expenses, and I'm past the 24 month rule so no travel anyway (my bus ticket is zero VAT anyway).

    My VAT 'surplus' in May was £18. My outgoings were my Office365 subscription (so zero VAT anyway), my hosting (Digital Ocean, so zero VAT), my mobile phone bill (about £26 inc VAT), my accountants bill (£114 inc VAT), plus some other non VATable stuff anyway. So it's probably neither here nor there. If my situation changes and I end up with more regular VATable costs, then I'll probably leave the FRS.

    Obviously not as good as February's FRS surplus of nearly £300, but the FRS was intended to simplify VAT accounting, not to make big profits.

  9. #9

    More time posting than coding


    Join Date
    Feb 2017
    Posts
    408

    Default

    Quote Originally Posted by Chart Accountancy View Post
    If you don't get a vat invoice to cover the vat, you will just miss out on the vat claim.
    If it's a sizeable transaction, you have their VAT number and details of what it was for, why should it be your problem. Yes, it's best to chase it up and get a VAT receipt retrospectively, but if this proves "hard", why should your business be out of pocket?? Case in point poxy online hotel bookings where the hotel takes your card payment at the desk and is clearly registered (based on how much they must turn over to continue to exist) and only passing some of this back to the convenience operator overseas.

  10. #10

    Contractor Among Contractors


    Join Date
    Jun 2015
    Posts
    1,163

    Default

    Quote Originally Posted by chopper View Post
    my Office365 subscription (so zero VAT anyway)
    Could you expand on this? Is this because they're providing it exc VAT because you gave them your VAT number?

    AFAIK you should still be paying the VAT on it in your return as "EC Services" (freeagent term maybe)?
    https://www.freeagent.com/support/kb...r-from-the-eu/

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •