Do you Flat Rate tax or not?

[MarillionFan]

Proper poll question for once.

My accountant suggested to me last year that I should swap to Flat Rate VAT. I know there are benefits. Just wondered who does / who doesn't and then NLUK can come in and give us a summary cause I can't be arsed to go into the professional boards to find the calc.

[SimonMac]

I'm flat rate, but I don't really expense stuff life food while away or petrol so there was little benefit for me to go "proper VAT" and try and off set purchases etc against receipts.

[Zoiderman]

Proper poll question for once.

My accountant suggested to me last year that I should swap to Flat Rate VAT. I know there are benefits. Just wondered who does / who doesn't and then NLUK can come in and give us a summary cause I can't be arsed to go into the professional boards to find the calc.

We started this year. Depends on your rate really. We're getting a benefit of about 9k this year, and that's on the back of what wouldn't have been much of a VAT claim anyway.

Next tax year, we're buying a new Commercial vehicle and some new puters for the 'office' including an iMac and some new iPads for the girls. As long as the spend is over £2k, you get the VAT back anyway, so it's really a no brainer.

[eek]

Proper poll question for once.

My accountant suggested to me last year that I should swap to Flat Rate VAT. I know there are benefits. Just wondered who does / who doesn't and then NLUK can come in and give us a summary cause I can't be arsed to go into the professional boards to find the calc.

For the consultancy stuff I will be flat rate as all clients will be VATable and it looks highly profitable (I think its something like a £1000 profit from doing so).

For the plan C my wife is playing with we will be using standard VAT accounting as it looks like we'll lose money any other way.

[SimonMac]

We started this year. Depends on your rate really. We're getting a benefit of about 9k this year, and that's on the back of what wouldn't have been much of a VAT claim anyway.

Next tax year, we're buying a new Commercial vehicle and some new puters for the 'office' including an iMac and some new iPads for the girls. As long as the spend is over £2k, you get the VAT back anyway, so it's really a no brainer.

Would the "above £2k" work on a company car as well, or does it have to be a commercial vehicle?

[MarillionFan]

Would the "above £2k" work on a company car as well, or does it have to be a commercial vehicle?

I looked at that. It has to be a commercial vehicle. A lot of people buy these things



As alledgedly they meet the criteria.

[Zoiderman]

Would the "above £2k" work on a company car as well, or does it have to be a commercial vehicle?

Has to be a 'vatable' company car and not all are.

[Zoiderman]

I looked at that. It has to be a commercial vehicle. A lot of people buy these things



As alledgedly they meet the criteria.

They do meet the criteria. The other benefit is that 100% is writable against corp tax. So if it costs £20 + Vat, you get the 4k back for the vat, then another £4k off Corp tax, so it ends up, technically, only costing £16k, with a bik amount of £3k, plus an additional £600 if you get the company to pay all petrol etc. I think we paid £6-700 a year to have it. Worth every penny.

Just bought a 4Motion 180ps DSG Transporter Kombi to turn into a camper. £37k to £24k in seconds.

[eek]

MF,

I love your new avatar! imitation is the sincerest form of flattery

[SimonMac]

Yeah I know that pick ups count as commercial but not a big fan of them, one of the reason's to get a new car is save money on fuel costs so a big 4WD that does 30mpg is no better then the V6 MG i got at the moment