I'm about to process the VAT application for an actor, usually the flat rate scheme is most appropriate at 12.5%. In order to get work, they suffer agents commission of around 12.5% + VAT which is a direct cost of sale.
Is it intended that the expenditure on 'goods' be expanded to expenditure on 'cost of sales' .... or are they too caught by the definition?
Thank you
Replies (4)
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It will be interesting to see what the final legislation says and what additional guidance HMRC provide, if any.
I doubt the savings under the FRS are very big. He would probably be better moving to standard VAT accounting.
I doubt the savings under the FRS are very big. He would probably be better moving to standard VAT accounting.
The sums show that he gets to keep 1% of the output tax he charges (assuming it's all standard rate).
Bearing in mind he can only be on FRS if his turnover is relatively low, that'll end up being [***] all.