This is my first year contracting (started in December 2018), via Limited company, so far no VAT needed. In the next couple of months, I will need to register for VAT as my company's taxable income is going to go over £85,000.
I work as a software developer.
Income:
- daily rate £450, £9,000 per month, £100,000 per year
My expenses:
- mileage: £180 / month
- train: £550 / month
That's it. Very simple from the accounting perspective and that's the reason why I run the accounts myself. So far so good but I am trying to wrap my head around the VAT related stuff.
Assuming the situation will be as described above for another year or so, which VAT scheme would make more sense, standard or flat rate? (I get some mixed messages reading this and other forums). Would you be able to use the above numbers to show an example VAT return?
I work as a software developer.
Income:
- daily rate £450, £9,000 per month, £100,000 per year
My expenses:
- mileage: £180 / month
- train: £550 / month
That's it. Very simple from the accounting perspective and that's the reason why I run the accounts myself. So far so good but I am trying to wrap my head around the VAT related stuff.
Assuming the situation will be as described above for another year or so, which VAT scheme would make more sense, standard or flat rate? (I get some mixed messages reading this and other forums). Would you be able to use the above numbers to show an example VAT return?
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