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VAT rate cut - will you be passing it on to clients?

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    VAT rate cut - will you be passing it on to clients?

    So VAT is getting slashed to 15%, and our flat rate will be going to 11.5%....which means for someone who normally earns £400 per day (and works an average of 23 days per month)...


    Used to invoice for: -
    23 x 400 x 1.175 = £10,810
    minus 13% VAT = 1,405.30

    = £9,404.70

    Now: -
    23 x 400 x 1.15 = £10,580
    minus 11.5% VAT = 1,216.7

    = £9,363.30


    So will you be passing this saving of "-£41.40" on to your client, like the government says you should?

    And if you dont, how will you morally live with yourself?!!!
    16
    Yes - it's my moral duty to society.
    50.00%
    8
    Dont be ridiculous, I'm a Tory and dont give a t*ss about anyone other than myself.
    25.00%
    4
    I'll donate it to the Save AndyW campaign.
    25.00%
    4
    Last edited by SallyAnne; 25 November 2008, 10:42. Reason: Thankfully we had Bagpuss around to point out a 0.5% miscalculation, otherwise I just dont know what I would have done.
    The pope is a tard.

    #2
    Originally posted by SallyAnne View Post
    So VAT is getting slashed to 15%, and our flat rate will be going to 11.5%....which means for someone who normally earns £400 per day (and works an average of 23 days per month)...


    Used to invoice for: -
    23 x 400 x 1.175 = £10,810
    minus 13.5% VAT = 1,459.35

    = £9,350.67

    Now: -
    23 x 400 x 1.15 = £10,580
    minus 11.5% VAT = 1,216.7

    = £9,363.30


    So will you be passing this saving of -£12.63 on to your client, like the government says you should?

    And if you dont, how will you morally live with yourself?!!!
    I think I preferred it before you edited.......

    Comment


      #3
      Originally posted by SallyAnne View Post
      So VAT is getting slashed to 15%, and our flat rate will be going to 11.5%....which means for someone who normally earns £400 per day (and works an average of 23 days per month)...


      Used to invoice for: -
      23 x 400 x 1.175 = £10,810
      minus 13.5% VAT = 1,459.35

      = £9,350.67

      Now: -
      23 x 400 x 1.15 = £10,580
      minus 10.5% VAT = 1,110.9

      = £9,469.10


      So will you be passing this saving of £118.43 on to your client, like the government says you should?

      And if you dont, how will you morally live with yourself?!!!
      Sorry, you've lost me there.

      I invoice at 17.5% and will now invoice at 15% is that not right?

      The accountant works out the Flat rate stuff and currently I forward 13% to HMRC but will now forward 11.5% - tell me if I'm wrong, but I think it's me that's out of pocket.
      Blood in your poo

      Comment


        #4
        Originally posted by SallyAnne View Post

        And if you dont, how will you morally live with yourself?!!!
        I think I'll survive. And who invoices 23 days a month on average? Do you work 6 days a week?
        ‎"See, you think I give a tulip. Wrong. In fact, while you talk, I'm thinking; How can I give less of a tulip? That's why I look interested."

        Comment


          #5
          At this rate, I'll probably be out of work until they put the rate back up, so I'm not too fussed.
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          Comment


            #6
            Originally posted by Sausage Surprise View Post
            Sorry, you've lost me there.

            I invoice at 17.5% and will now invoice at 15% is that not right?

            The accountant works out the Flat rate stuff and currently I forward 13% to HMRC but will now forward 11.5% - tell me if I'm wrong.
            You are right - but as per SallyAnne's calculation, your Ltd Co will retain less than before. Will you pass that on to the client?

            Comment


              #7
              Originally posted by BrilloPad View Post
              I think I preferred it before you edited.......
              yeah I know - I got my sums wrong
              The pope is a tard.

              Comment


                #8
                Originally posted by expat View Post
                You are right - but as per SallyAnne's calculation, your Ltd Co will retain less than before. Will you pass that on to the client?
                What do you think?
                Blood in your poo

                Comment


                  #9
                  Sally, There is no saving, you lose out. FRS for most IT is 13% not 13.5%.
                  The court heard Darren Upton had written a letter to Judge Sally Cahill QC saying he wasn’t “a typical inmate of prison”.

                  But the judge said: “That simply demonstrates your arrogance continues. You are typical. Inmates of prison are people who are dishonest. You are a thoroughly dishonestly man motivated by your own selfish greed.”

                  Comment


                    #10
                    Originally posted by Bagpuss View Post
                    Sally, There is no saving, you lose out. FRS for most IT is 13% not 13.5%.
                    SallyAnne said

                    will you be passing this saving of -£12.63 on to your client

                    Comment

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