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Flat Rate Scheme VAT rates will be ammended!

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    Flat Rate Scheme VAT rates will be ammended!

    VAT Flat Rate Scheme 4.12

    The VAT Flat Rate Scheme allows businesses with a turnover less than £150,000 to simplify their VAT accounting. Alongside the temporary reduction of the standard rate of VAT, the Government will also amend the sectoral rates of the VAT Flat Rate Scheme in line with the standard rate reduction, allowing 180,000 small businesses in the scheme to benefit from the rate reduction.

    Cats are evil.

    #2
    how will we benefit in the reduction of flat vat rate?
    The proud owner of 125 Xeno Geek Points

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      #3
      get an invoice in at 17.5 and pay back at 10.5?

      The court heard Darren Upton had written a letter to Judge Sally Cahill QC saying he wasn’t “a typical inmate of prison”.

      But the judge said: “That simply demonstrates your arrogance continues. You are typical. Inmates of prison are people who are dishonest. You are a thoroughly dishonestly man motivated by your own selfish greed.”

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        #4
        Originally posted by chef View Post
        how will we benefit in the reduction of flat vat rate?
        Not so much benefit, rather not lose out..
        Proud owner of +5 Xeno Geek Points

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          #5
          Originally posted by chef View Post
          how will we benefit in the reduction of flat vat rate?
          Because most contractors are on the FRS. We charged 17.5% pay back 13% of turnover. Next month charge 15% and pay HMRC 10.5% rather than 13%. The fear was they would conveniently forget to lower the FRS levels, costing us £100s.

          HTH
          Cats are evil.

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            #6
            ahhhh i see, so invoice sunday 30th then
            Last edited by chef; 24 November 2008, 16:54.
            The proud owner of 125 Xeno Geek Points

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              #7
              I suppose our Ltd Companies will earn a bit less interest on those VAT payments, but the bank interest is tulip anyhow these days.
              Cats are evil.

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                #8
                will the reduction in FRS cover everything invoiced during MyCo's last VAT quarter? or do i apply 12% to the gross revenue up until 30/11/08, and 9.5% to everything invoiced after?
                Originally posted by BolshieBastard
                You're fulfilling a business role not partaking in a rock and roll concert.

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                  #9
                  Originally posted by swamp View Post
                  Because most contractors are on the FRS. We charged 17.5% pay back 13% of turnover. Next month charge 15% and pay HMRC 10.5% rather than 13%. The fear was they would conveniently forget to lower the FRS levels, costing us £100s.

                  HTH
                  Not quite - the rates don't all drop by 2.5%.

                  IT consultancy drops to 11.5%

                  The rates are in this post.

                  You'll only pay 10.5% if you are in catering, financial services or hairdressers.
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                    #10
                    Originally posted by lambrini_socialist View Post
                    will the reduction in FRS cover everything invoiced during MyCo's last VAT quarter? or do i apply 12% to the gross revenue up until 30/11/08, and 9.5% to everything invoiced after?
                    meh, answered my own question by RTFM on HMRC

                    You will have to make two calculations for that period, one with the appropriate
                    fraction applied to receipts before the change and one with the new VAT fraction
                    applied to receipts after the change. Section 7 of Notice 727 VAT Retail Schemes
                    tells you more about this and the following paragraphs briefly tell you about the
                    effect on each of the schemes.
                    Originally posted by BolshieBastard
                    You're fulfilling a business role not partaking in a rock and roll concert.

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