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Flat Rate not for me?

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    #1

    Flat Rate not for me?

    I have been looking to get set up for VAT, I am sure I will be just under the limit so thought I may as well get it doen just in case.

    Offering my services I think it is 13%, but doing this I would loose out on claiming the VAT back for my IT hardware/Software and other business purchases.

    Is that the right way of thinking? or should i just pocket the flat rate and be happy?
    Pleomax

    This is an unusual paragraph. I'm curious as to just how quickly you can find out what is so unusual about it. It looks so ordinary and plain that you would think nothing was wrong with it. In fact, nothing is wrong with it! It is highly unusual though. Study it and think about it, but you still may not find anything odd. But if you work at it a bit, you might find out. Try to do so without any coaching!
    Tags: None
    #2
    You've got it in one - the question you need to consider is how much your VAT-able expenses are compared with the VAT that you will be charging on invoices. If you are better off, then do it; if not,don't.

    Remember you get a 1% discount in your first year of VAT registration too if you move onto FRS.
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    Comment

      #3
      Even if you are on FRS you can claim VAT back on capital expenditure over £2,000.

      Comment

        #4
        There was a good link posted here a while back which detailled the flat rate %'s. I can not for the life of me find it now

        Can you apply for normal VAt then decide to go flat rate and change, I got confussed last night reading the HMRC web site and had far too much falling down juice to understand. Just asking for peoples experience's.
        Pleomax

        This is an unusual paragraph. I'm curious as to just how quickly you can find out what is so unusual about it. It looks so ordinary and plain that you would think nothing was wrong with it. In fact, nothing is wrong with it! It is highly unusual though. Study it and think about it, but you still may not find anything odd. But if you work at it a bit, you might find out. Try to do so without any coaching!

        Comment

          #5
          FRS, it's a no brainer.

          Comment

            #6
            was a plea the other day to Gordon Brown by one of the big business organisations (CBI?) for the VAT to be reduced to 13% ish help the country. Would be interesting

            Comment

              #7
              Originally posted by Turion View Post
              FRS, it's a no brainer.
              Not always - but almost certainly in the case of an IT contractor.

              Comment

                #8
                Ok Ok I own up I am not an IT Contractor...............

                I am a procurement Contractor, but you guys are so nice, I hope I can stay?
                Pleomax

                This is an unusual paragraph. I'm curious as to just how quickly you can find out what is so unusual about it. It looks so ordinary and plain that you would think nothing was wrong with it. In fact, nothing is wrong with it! It is highly unusual though. Study it and think about it, but you still may not find anything odd. But if you work at it a bit, you might find out. Try to do so without any coaching!

                Comment

                  #9
                  Originally posted by Turion View Post
                  FRS, it's a no brainer.
                  ... for most people.

                  I'm not on FRS then again I have a lot of VAT able outgoings.

                  Comment

                    #10
                    Originally posted by pleomax View Post
                    Ok Ok I own up I am not an IT Contractor...............

                    I am a procurement Contractor, but you guys are so nice, I hope I can stay?

                    Comment

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