OT: Anyone gone onto the VAT flat rate system?
Discussion
I applied last month, but I haven't heard anything back and I need to file by the end of the month.. FRS will save me upto £400 per quarter so I want to use it for my last quarter 
Called my VAT Registration office today and got lost several times in a vicemail labyrinth, ended up faxing them but nothing back yet...
Anyone know the score? Is it a different form for the return or just a different way of completing the old one?
Called my VAT Registration office today and got lost several times in a vicemail labyrinth, ended up faxing them but nothing back yet...
Anyone know the score? Is it a different form for the return or just a different way of completing the old one?
Its been a while since I have actively kept up with the accounting world and the FRS has not been relevant to me so I cannot comment on the forms that are necessary. It could be a likely possibility that you could just use your standard quarterly forms.
One word of warning about this scheme: If you are in IT you will be paying the highest rate 14.5%, which is only slightly lower than the standard rate (i.e. 7/47). And may save you a maximum of £462.50 a year. BUT, as I understand it, you will NOT be able to reclaim any input tax on relevant purchases. If you buy lots of standard rated items then you could be worse off.
I think you just calculate your VAT using your Gross (inc VAT) sales and multiply that by the percentage applicable to your trade sector. I presume that you dont need to fill out the Input Tax section, so you have your figure. I am probably wrong but thats what I would do, seeing as you have registered and not received anything. None of my handbooks say anything about the forms to be filled out and I have never done it personally...Sorry!
One word of warning about this scheme: If you are in IT you will be paying the highest rate 14.5%, which is only slightly lower than the standard rate (i.e. 7/47). And may save you a maximum of £462.50 a year. BUT, as I understand it, you will NOT be able to reclaim any input tax on relevant purchases. If you buy lots of standard rated items then you could be worse off.
I think you just calculate your VAT using your Gross (inc VAT) sales and multiply that by the percentage applicable to your trade sector. I presume that you dont need to fill out the Input Tax section, so you have your figure. I am probably wrong but thats what I would do, seeing as you have registered and not received anything. None of my handbooks say anything about the forms to be filled out and I have never done it personally...Sorry!
To be honest, for the amount of fcuking about it takes, I'd carry on with the current system. It's not worth taking on the might of the tax system.
Either that, or I'd get my accountant to sort it.
Or, I'd get Mrs ap_smith to sort it out. By the time she's finished with the tax office they'd be pleading with me to take a large rebate to go away.
>> Edited by ap_smith on Tuesday 18th June 09:42
Either that, or I'd get my accountant to sort it.
Or, I'd get Mrs ap_smith to sort it out. By the time she's finished with the tax office they'd be pleading with me to take a large rebate to go away.
>> Edited by ap_smith on Tuesday 18th June 09:42
right - I've found the information I need... my original impression was clearly wrong, but it's no loss to me at present.. I can come back out of the scheme if it's not working for me..
would help if there were any of these C&E gimps available on the phone, but it was not to be..
nothing's ever simple..
would help if there were any of these C&E gimps available on the phone, but it was not to be..
nothing's ever simple..
CarZee
Here's an excerpt from Customs own Public Service charter:
"Like all Government organisations, we are committed to continually improving the quality of service we provide. We do this by stating clearly the levels of service you should be able to expect, and through a Public Service Agreement which, among other things, aims to make it as easy as possible for individuals and businesses to understand and comply with their obligations.
We are a multi-winner of the Government sponsored Charter Mark scheme and are committed to achieving and maintaining the high levels of service the Charter Mark sets out."
You can find the charter here:
www.hmce.gov.uk/about/excellence/ceservstand.htm
You'll see they promise to respond to Advice Centre telephone calls within 20 seconds.
Sounds to me like you have a case for writing directly to their press office:
press.office@hmce.gsi.gov.uk.
Good luck. Hold these public servants accountable!
Here's an excerpt from Customs own Public Service charter:
"Like all Government organisations, we are committed to continually improving the quality of service we provide. We do this by stating clearly the levels of service you should be able to expect, and through a Public Service Agreement which, among other things, aims to make it as easy as possible for individuals and businesses to understand and comply with their obligations.
We are a multi-winner of the Government sponsored Charter Mark scheme and are committed to achieving and maintaining the high levels of service the Charter Mark sets out."
You can find the charter here:
www.hmce.gov.uk/about/excellence/ceservstand.htm
You'll see they promise to respond to Advice Centre telephone calls within 20 seconds.
Sounds to me like you have a case for writing directly to their press office:
press.office@hmce.gsi.gov.uk.
Good luck. Hold these public servants accountable!
quote:
right - I've found the information I need...
Hmm, I forgot the cardinal rule: never ask an accountant an apparently simple question...
Well, I did get the simple answer ("It's probably not worth it in IT") and then the promise of looking up more info. Basically, it depends if you buy much stuff or not (as I understood it).
Anyway, I'm promised more info -- mail me through profile if you still want it.
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