I am coming to the end of my first year of contracting, best thing I ever did (should have jumped earlier).
So MyCo is signed up for VAT under Flat Rate Scheme Limited Cost Trader rate with the discount of 1% for year 1 - 15.5% instead of 16.5%
I have not input tax and only provide services charged at VAT standard rate.
So after the year 1 discount goes (MyCo retains approx £300 per qtr in the discounted rate), the retain amount will be approx £40 per qtr.
MyCo is over £85K turnover figure so must be registered for VAT.
Does MyCo suck it up on FRS 16.5% LCT or have others come off the FRS and moved to standard/cash accounting but as MyCo has no input vat then it will be no better off?
Then again £40 per qtr for collecting VAT for HMRC is not such a bad thing?
What have others done?
Thanks
So MyCo is signed up for VAT under Flat Rate Scheme Limited Cost Trader rate with the discount of 1% for year 1 - 15.5% instead of 16.5%
I have not input tax and only provide services charged at VAT standard rate.
So after the year 1 discount goes (MyCo retains approx £300 per qtr in the discounted rate), the retain amount will be approx £40 per qtr.
MyCo is over £85K turnover figure so must be registered for VAT.
Does MyCo suck it up on FRS 16.5% LCT or have others come off the FRS and moved to standard/cash accounting but as MyCo has no input vat then it will be no better off?
Then again £40 per qtr for collecting VAT for HMRC is not such a bad thing?
What have others done?
Thanks
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