Vat killing me!

[simonm]

Vat update...being great so far as I have bought lots and lots of new gear and have claimed just over 10 grand back, on the downside now I have stopped buying and am starting to save I am just playing tax collector for hmrc.

I do tend to feel like wasting my time with some jobs as the extra 20% is outpricing us. I am now looking into the flat rate scheme which I believe is a fixed 12%.

[Ian C]

The flat rate scheme is still the full amount charged out but you can't claim back for anything under 2k, not an expert on vat or flat rate but I did ask my accountant and because you can't claim back for small purchase I would of been 1500 worse off one year.

 

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[skyhuck]

The flat rate scheme is still the full amount charged out but you can't claim back for anything under 2k, not an expert on vat or flat rate but I did ask my accountant and because you can't claim back for small purchase I would of been 1500 worse off one year.

 

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My accountant reckons the flat rate scheme saves me £800 per year, plus there is less room for error, so there is no real risk of cocking up.

[Ian C]

My accountant reckons the flat rate scheme saves me £800 per year, plus there is less room for error, so there is no real risk of cocking up.

Yeah it's Deffo simpler, for you dave it's probably better as you have big kit paid for for us lesser mortals buying small kit that we can claim back on it would work against us .......I might be talking complete bollox though.

 

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[Justme]

Vat update...being great so far as I have bought lots and lots of new gear and have claimed just over 10 grand back, on the downside now I have stopped buying and am starting to save I am just playing tax collector for hmrc.

I do tend to feel like wasting my time with some jobs as the extra 20% is outpricing us. I am now looking into the flat rate scheme which I believe is a fixed 12%.

 

Thats wont directly help your sales prices.

 

You still charge 20% you just pay at 12% without working out the correct amount after purchases.

[simsimo]

I would have thought the flat rate scheme works best for most small Arb firms. As long as you're still getting the work in at the increased price, you are now earning another 8% per job (before corporation tax).

Also, I think I'm right in saying that if you can wait and buy a few tools at the same time so the single transaction is over £2k then that works for claiming the VAT back.

[benedmonds]

The flat rate works really well, we have had to move to the full rate and it is a PITA.

[Al Cormack]

My book keeper works it out both ways, and every month I pay less to hmrc on the flat rate than on the standard. They have set up a 'profit on vat' account.

It's currently on £8500 after three returns.

 

 

http://www.cormacktreecare.co.uk

[simonm]

The idea of the flat rate was to put me on a level playing field with other non vat registered arb firms. I have found that i don't seem to win as much work as before vat registered but its not made that much of a difference as i was previously worried about.

I think that some folk just want work doing for nowt it does'nt matter if there's vat on top or not.

[Ian C]

The idea of the flat rate was to put me on a level playing field with other non vat registered arb firms. I have found that i don't seem to win as much work as before vat registered but its not made that much of a difference as i was previously worried about.

I think that some folk just want work doing for nowt it does'nt matter if there's vat on top or not.

Simon your pretty much right, some want it for free Wether there is vat or not but the same people pay vat at every petrol station, bnq garage etc etc, you can't win em all but I have noticed on the domestic front if you just give a price "all in" I get less hassle.

 

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