View Full Version : VAT flat rate scheme
DuaneJackson
24th March 2006, 17:48
Does anyone here use it? Does it save you time/money?
multilingual
24th March 2006, 17:55
Looked at it, but it depends what % rate they will allow you to work from.
I don't think it would save us much, but it can work for certain companies.
As for saving time, my VAT is automated anyway so it takes no time to do.
JB
KM-Tiger
24th March 2006, 22:14
Yes, I use it for some commercial property that I own and rent out, saving a few thousand per year.
Time saving? If you are using good accounting software then VAT returns will only take minutes to do anyway.
Jayne
24th March 2006, 22:19
What software do you use Duane? :lol:
Jayne
DuaneJackson
24th March 2006, 23:15
What software do you use Duane? :lol:
Jayne
:p
That's actually why I'm asking - I'm wondering if I need to factor this in as an option for VAT calculations.
BMS
25th March 2006, 06:22
Hi Duane
I don't know of any commercial software that allow you to chose the type of VAT return you produce and so it might be any interesting feature for Kashflow.
Don't know how your software is programmed but I would imagine having a single option of setting up as a flat rate scheme by entering your flat rate % and then calculating VAT on gros sales would be a nice option.
Time wise there is no difference as already stated as most software will calculate VAT returns for you anyway. Money wise it depends on the type of business and the input tax level compared with output tax.
Bill.Webster
27th March 2006, 09:54
Hi Duane,
I don't use the flat rate scheme, but over the last couple of years I would actually have paid less VAT if I had.
I originally resisted because when our esteemed Chancellor introduced the scheme the flat rate for IT consultants would actually have resulted in me paying *more* VAT. Clearly they have fine tuned it a bit now, but you still need to do the analysis for your own business sector to see if it will result in a lower VAT bill or not.
The other reason that I am still resisting is that I have an inbuilt distrust of this fiscal regime, and I don't think I'm paranoid. I don't like the idea of simplifying my existing accounting methods now to save a few hundred quid a year only to find that they go and change the flat rate for my sector at the next budget. At least at the moment I know where I stand. If I simplify my accounting procedures now, then it could be a real heave-ho to produce normal v flat-rate comparisons in the future...
And of course if you have dreams of growing beyond exemption territory then why set yourself up in such a way that you are guaranteed disruption at some point in the future?
Maybe I am paranoid! :shock:
Good Luck!
Bill Webster
DuaneJackson
10th January 2008, 19:05
Just resucitating this thread.
As from tomorrow afternoon KashFlow will fully support Flat Rate Scheme VAT. Up until now we went with just letting you know how much VAT you owe. Now it will give you all of the figures for your return as well as allowing you to reclaim VAT on Capital Expenditure that's > £2k.
(we still support standard accrual VAT and the cash accounting scheme)
DFL
10th January 2008, 19:54
Excellent news!
You have no idea how happy that makes me, which I fully appreciate makes me a very sad person.
DuaneJackson
10th January 2008, 20:02
Good to hear. Got another nice little addition going live tomorrow too which hopefully your clients will like. Keeping it up my sleeve until tomorrow though : )
WorldSalon
10th January 2008, 22:45
My husband is a project management consultant. He charges his clients the full VAT and his flat rate is 12.5%. He keeps the rest...
Kent Accountant
11th January 2008, 06:43
I'm sure that will be a useful add on. TAS has it already, but I haven't looked to see if it works :) TAS allegedly also files the VAT return online
DuaneJackson
11th January 2008, 07:24
TAS allegedly also files the VAT return online
We will too in a couple of months.
two sheds
11th January 2008, 13:02
Duane, you are such a tease! Good news about the flat rate vat
Julie
alexft
12th January 2008, 00:40
My husband is a project management consultant. He charges his clients the full VAT and his flat rate is 12.5%. He keeps the rest...
Interesting. Is it foolproof? Can Revenue challenge such scheme and reclaim the difference if they choose so?
With kindest regards,
Alex.
DuaneJackson
12th January 2008, 00:48
HMRC are the ones who set the percentage for you - mainly dependent on your industry (plus you get an extra 1% off in your first year).
WorldSalon
12th January 2008, 01:01
It is foolproof, you choose the sector you are involved in, and that sets your percentage. Dead easy.
Robin1035
5th March 2008, 15:26
Point 15.7 in Notice 733
Hello!
Not sure if anyone can help but I notice that section 15 was added to the Flat Rate Scheme for small businesses document that was updated in March 2007. Can anyone confirm that prior to this, the section 15.7 "What if goods are bought to lease let or hire" was not mentioned. I signed up to the scheme hiring play units two years ago but think the rule that this equipment cannot be classified as capital expenditure goods has only recently been introduced. Am I correct?
Thanks,
Robin