Originally posted by rashm2k
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Originally posted by rashm2k View PostFrom what I've read about the flat rate vat, it depends on your expenses whether it's worth it.
I may have expenses (driving to/from client, hotels, subsistence etc), so not 100% sure whether I should register for flat vat rate, but it might make things a little easier.
next step is to chat to an accountant!
Say you register at 14.5%, which would be 13.5% in the first year, and your turnover is £100,000.
£120,000 x 13.5% = £16,200. So your "profit" from flat rate is £3,800.
Will the VAT that you cannot reclaim exceed £3,800?
If you need to buy small equipment then also consider whether it's worth registering for VAT, buying it, then swapping to flat rate in the next quarter. Gives you the chance to reclaim VAT on smaller items that you otherwise wouldn't be able to (the flat rate scheme allows you to reclaim on assets over £2,000 but not on smaller items).Comment
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