Flat Rate Scheme VAT rates will be ammended! Flat Rate Scheme VAT rates will be ammended!
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    Talking 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.


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    how will we benefit in the reduction of flat vat rate?
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    get an invoice in at 17.5 and pay back at 10.5?

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    Quote 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..
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    Quote 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

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    ahhhh i see, so invoice sunday 30th then
    Last edited by chef; 24th November 2008 at 16:54.
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    I suppose our Ltd Companies will earn a bit less interest on those VAT payments, but the bank interest is tulip anyhow these days.

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    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?
    Quote Originally Posted by BolshieBastard View Post
    You're fulfilling a business role not partaking in a rock and roll concert.

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    Quote 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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    Quote 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.
    Quote Originally Posted by BolshieBastard View Post
    You're fulfilling a business role not partaking in a rock and roll concert.

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