VAT flat rate scheme
- Thread starter DuaneJackson
- Start date
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.
Time saving? If you are using good accounting software then VAT returns will only take minutes to do anyway.
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B
BMS
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.
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.
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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
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
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- Original Poster
- #8
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)
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)
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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
TAS allegedly also files the VAT return online
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R
Robin1035
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
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
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