Which VAT scheme should I register?

**DaveB** · 2 May 2006, 12:37

VAT registration is always a good idea. Pissing of the VAT man is a very unwise thing to do and will get you in far more trouble than even the IR.

If you have low VAT'able expenses i.e. nothing over £2000 on a regular basis the the FRS is the best bet. As an extra incentive to get an additional 1% discount for the first 12 months of trading.

An accountant is the best person to ask. The financial advice you get on here is generally worth what you paid for it.

You can also ring HMRC and talk to them. The VAT people are generally very helpfull and informed.

**sugsy** · 2 May 2006, 14:07

i registered for VAT in January, but did not claim VAT from my client until May due to no response from VAT People until last month. do i just submit returns for when i claimed regardlesss of registration ?

**css_jay99** · 2 May 2006, 14:43

I am just having a look at the IR site on VAT apart from the 1st Year, the Flat rate scheme is of absolutely no use if i cant claim anything back. I mean other than having to do the VAT man's job for him, I dont get nothing back in return for my effort.

Am I missing something here ?

Do I charge Agency 17.5% and then give IR 13.0% ?

Cheers

**MrsGoof** · 2 May 2006, 14:53

You charge customer £1000 + £175 VAT total £1175

When you come to pay VAT on the flat rate scheme you pay 13% of the gross = £152.75

enroute you have just pocketed the difference between VAT charged and VAT paid £22.25

SO multiply it up to say £10k then its £222.5 for doing nowt.

**Pondlife** · 2 May 2006, 15:29

Originally posted by MrsGoof

You charge customer £1000 + £175 VAT total £1175

When you come to pay VAT on the flat rate scheme you pay 13% of the gross = £152.75

enroute you have just pocketed the difference between VAT charged and VAT paid £22.25

SO multiply it up to say £10k then its £222.5 for doing nowt.

Do you then have to pay CT on the difference ?

**Gold Dalek** · 2 May 2006, 15:32

Originally posted by sugsy

i registered for VAT in January, but did not claim VAT from my client until May due to no response from VAT People until last month. do i just submit returns for when i claimed regardlesss of registration ?

You are in trouble...VAT people will say you should have attached "VAT number applied for" to the top of your invoices and claimed VAT straight away

They will wait a year (to allow the interest to accrue) then expect a visit to assess you as having missed your payments for 2 quarters

Interest will be compounded ...

**css_jay99** · 2 May 2006, 17:35

cheeky sods !

**css_jay99** · 2 May 2006, 17:37

Originally posted by Pondlife

Do you then have to pay CT on the difference ?

thats a good point !, any ideas ?

**Pondlife** · 2 May 2006, 17:55

Pretty sure you do.

Which VAT scheme should I register?