VAT reduced to 15%

[PAH]

I do my VAT calculation four times a year

We all do, it's quarterly!

VAT is the easiest tax to calculate ever. Even simpler for those of us on monthly invoicing. I tend to reclaim quite a lot over a year, anything remotely IT related in fact, including my big LCD TV, er, monitor, so the FRS doesn't appeal to me. Each return takes me under 30 mins to work out, so no biggie.

I'm with you on the expenses though. Having to record all the milage is a pain, but knowing it's reducing my tax bill is what keeps me going.

I laughed when watching the early evening news. They had a few 'jo publics' giving their verdicts, and they all gave the thumbs down. Almost as funny as Labour deferring all the tax increases till after the next election, probably expecting the cons to walk it, and take all the flak.

[Alf W]

Looks like they will be making the changes for FRS.

Oh do keep up at the back please!

http://forums.contractoruk.com/697997-post10.html

[TheFaQQer]

http://www.hmrc.gov.uk/pbr2008/pbrn26.pdf

FRS rates are coming down in line with the headline VAT rate.

almost in line, or not at all, depending on your industry

[PAH]

Seeing as you have to specify your 'industry' to qualify for the FRS, am I the only one who sees it as yet another way HMRC can track the 'tax dodging' service companies, especially now the IR and C&E have merged?

My Ltd has always been classed as retail (and a few other categories), but nothing specifically to do with IT. So far no problems, they're too busy chasing the numpties that put 'IT', 'Services', or 'Consultancy' in their company name.

[dx4100]

Seeing as you have to specify your 'industry' to qualify for the FRS, am I the only one who sees it as yet another way HMRC can track the 'tax dodging' service companies, especially now the IR and C&E have merged?

My Ltd has always been classed as retail (and a few other categories), but nothing specifically to do with IT. So far no problems, they're too busy chasing the numpties that put 'IT', 'Services', or 'Consultancy' in their company name.

like me

[expat]

But you will be spending less on VAT too.

Absolutely, because the price of everything will go down because of this VAT cut.

Won't it?

[Purple Dalek]

Absolutely, because the price of everything will go down because of this VAT cut.

Won't it?

Ha ha ha ha ha

bonk

The naiveté of the young, isn't it wonderful.

[expat]

OK, I'll try another one:

at the end of next year, whan VAT goes back up again, the price of everything will go up, won't it?

See, I was half right.