vat flat rate

[Freetown]

I have enrolled for the flat rate vat scheme and hence by applying its rules I can make 5% on transactions.
I was wondering how this money could then be extracted from my business account other than taking it as salary and paying the necessary PAYE and NI contributions?
I am under the IR35 legislation and hence currently not paying myself any dividends.
Thanks

[imightbewrong]

FRS VAT profit is just revenue in the same way as any other. You are not 'paid' it - you just pay less VAT than you collect.

If you are within IR35 then all profit is treated as salary isn't it? I didn't think there was a stage where the money was in a 'business account' and hence not 'extracted' yet.

[Robot]

I have enrolled for the flat rate vat scheme and hence by applying its rules I can make 5% on transactions.
I was wondering how this money could then be extracted from my business account other than taking it as salary and paying the necessary PAYE and NI contributions?
I am under the IR35 legislation and hence currently not paying myself any dividends.
Thanks

You might need to pay PAYE/NI on it, as it is the daily rate + Flat rate profit = turnover, less 5%, pension, PII, travel and subs (in relation to the contract) Gross salary and Employers NI - Any balance available would be payable as gross salary + NI !!

The 5% less general expenses (computers, phone, accountancy fees etc.) = a profit, the profit is taxable at 20% then if you have anything left, as reserves, you could make your other half the sole shareholder and pay them the dividend, or just leave the funds in the company.

Just thoughts, best speak to your accountant, as you may not be under IR35.

Robot