Coming off FRS LCT VAT after Year 1?

[JRCT]

I was on FRS at first when the rate was lower than the current and it was ok - a little bit of money for nothing, really.

I then had my first contract where I had to stay away during the week and stupidly forgot to come off it until about 3 months into the contract. Probably cost me a few hundred quid.

I am now on another contract where I don't have to stay away so back to minimal VAT spend, but still I would stay off it. It's hardly time consuming to work it out, and being off it will make sure you don't cock-up like I did if/ when your situation changes.

[Chart Accountancy]

ok I do have 1 input tax invoice per month, FreeAgent. Buy some stationery once a quarter from Tesco but there is no vat on that (£30). Don't reclaim broadband usage (from house broadband) as use the standard £18.00 per month "use of home allowance" reclaim.

Will check with my FA accountant what she recommends, but was interested to know what seasoned contractors have done - was the purpose of the post. I will be led by my accountant - though the first one I had (local 1 man band) was crap and ditched them to FA. Hindsight.......

The VAT saving if under the standard scheme will be highly likely higher than the FRS when you lose the 1% discount. The standard scheme would require you though to be more organised with recording your VAT claims correctly, and retaining a valid vat invoice for each claim (ideally attaching the receipts in FreeAgent).