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macgabhr
12th January 2012, 19:59
I have a quick question regarding the flat rate vat scheme. If I register for a flat rate and I am entitled to a rebate of say 5% is my company (ltd company) liable to pay corporation tax on this rebate as technically it is profit for my company?

Thanks

Bob

SimonMac
12th January 2012, 20:14
I have a quick question regarding the flat rate vat scheme. If I register for a flat rate and I am entitled to a rebate of say 5% is my company (ltd company) liable to pay corporation tax on this rebate as technically it is profit for my company?

Thanks

Bob

Yes

TheFaQQer
12th January 2012, 20:19
You might want to have asked this in the accounting forum, rather than here.

I wasn't aware that you got a rebate for FRS.

MarillionFan
12th January 2012, 20:19
Yes

In that case, without bothering to head over to the professional boards or search the site up to what turnover or expenses threshold is flat rate better than 20% and what's the difference?

[calculators ready]

SimonMac
12th January 2012, 20:23
In that case, without bothering to head over to the professional boards or search the site up to what turnover or expenses threshold is flat rate better than 20% and what's the difference?

[calculators ready]

Calculator? N00b can't you do those sums in your head, bloody yoof of today rely on technology way too much, why bother learning anything, lets just Google it and hope that Wikipedia is up to date

northernladuk
12th January 2012, 20:25
Yes

No

MarillionFan
12th January 2012, 20:25
Calculator? N00b can't you do those sums in your head, bloody yoof of today rely on technology way too much, why bother learning anything, lets just Google it and hope that Wikipedia is up to date

So you can't do it? Ok. No problem.

TheFaQQer
12th January 2012, 20:31
In that case, without bothering to head over to the professional boards or search the site up to what turnover or expenses threshold is flat rate better than 20% and what's the difference?

[calculators ready]

Assuming that all expenses are zero rated, then you are always better being on FRS.

MarillionFan
12th January 2012, 20:41
Assuming that all expenses are zero rated, then you are always better being on FRS.

Calculation of expenses versus turnover?

TheFaQQer
12th January 2012, 20:46
Calculation of expenses versus turnover?

Depends on the rate of VAT for each expense class, doesn't it?

There is no answer.

MarillionFan
12th January 2012, 20:47
Depends on the rate of VAT for each expense class, doesn't it?

There is no answer.

So you can't do it? Ok. No problem

macgabhr
12th January 2012, 21:12
So you can't do it? Ok. No problem



BAcially vat is calculated at 20% but for certain contractors vat may be paid at a lower rate for example 11% for agricultural services. So therefore if you are registered for vat you can cliam back the surplus of inthis case 9% but I want to know is this subject to corporation tax because technically it is profit for the company?

SimonMac
12th January 2012, 21:14
BAcially vat is calculated at 20% but for certain contractors vat may be paid at a lower rate for example 11% for agricultural services. So therefore if you are registered for vat you can cliam back the surplus of inthis case 9% but I want to know is this subject to corporation tax because technically it is profit for the company?

And I answered your question you ungrateful dumbass, next time say thank you!

northernladuk
12th January 2012, 21:59
And I answered your question you ungrateful dumbass, next time say thank you!

OMG LOL!!! Why can't we say that in the other forums :rollin:

northernladuk
12th January 2012, 21:59
BAcially vat is calculated at 20% but for certain contractors vat may be paid at a lower rate for example 11% for agricultural services. So therefore if you are registered for vat you can cliam back the surplus of inthis case 9% but I want to know is this subject to corporation tax because technically it is profit for the company?

Yes

(and this is an IT forum not an agricultural one)

AtW
12th January 2012, 22:04
(and this is an IT forum not an agricultural one)

It is in General :eyes

MarillionFan
12th January 2012, 22:17
It is in General :eyes

WHS

It's full of sh1t in here.

TheFaQQer
12th January 2012, 22:20
It is in General :eyes

That just means it's with the rest of the slurry

:igmc:

macgabhr
18th January 2012, 21:28
And I answered your question you ungrateful dumbass, next time say thank you!

Answering with a simple yes or no isn't exactly worthy of a thanks, you have no reasoning for answer so justify it and then i'll thank you asswipe.

EternalOptimist
18th January 2012, 21:34
FRS will make you a couple of hundred quid a year, plus its slightly easier to administer.
Proper contractors dont do expenses


hth


:rolleyes:

Ruprect
18th January 2012, 21:34
Yes


No

Maybe

Scrag Meister
19th January 2012, 08:30
Yes, you do pay CT on the difference between the gross 20% VAT charged to the client and the, for example, 14.5% of gross charged for the FRS.

EternalOptimist
19th January 2012, 09:45
Yes, you do pay CT on the difference between the gross 20% VAT charged to the client and the, for example, 14.5% of gross charged for the FRS.

and dont forget, gross charged means you pay 14.5% on the invoice amount + vat


which catches a lot of noobs out

so if your invoice is for £1000, you charge £200 vat = 1200

you pay the vat man 14.5% of 1200 = £174

then you pay ct on the £26 profit

which is why the frs only makes a you few hundred a year



:rolleyes:

macgabhr
19th January 2012, 19:13
and dont forget, gross charged means you pay 14.5% on the invoice amount + vat


which catches a lot of noobs out

so if your invoice is for £1000, you charge £200 vat = 1200

you pay the vat man 14.5% of 1200 = £174

then you pay ct on the £26 profit

which is why the frs only makes a you few hundred a year



:rolleyes:



Thanks EternalOptimist that's exactly the answer I was looking for!

Waldorf
19th January 2012, 20:28
and dont forget, gross charged means you pay 14.5% on the invoice amount + vat


which catches a lot of noobs out

so if your invoice is for £1000, you charge £200 vat = 1200

you pay the vat man 14.5% of 1200 = £174

then you pay ct on the £26 profit

which is why the frs only makes a you few hundred a year


:rolleyes:

But this is 2.6% - so whilst that sounds small change, if you are charging out at £80K, then this is £2080 a year - quite a tidy sum for doing nothing.

TheFaQQer
20th January 2012, 09:04
and dont forget, gross charged means you pay 14.5% on the invoice amount + vat


If you are in your first year of VAT registration, you also get a 1% discount on that rate as well.