VAT & FRS - Good plan, or naughty?

New client, c. £52k turnover would fall within 12% FRS Rate - the benefit of being the FRS would be a further £2.5k in his pocket courtesy of her maj. However, he is in a trade where a reasonable outlay on tools has been incurred over the preceeding 4 yr.

If I register him for VAT, calculate the first return on an invoice accounting basis and claim vat on all tools up to press and subsequently from quarter 2 apply for FRS registration to take advantage of the lower rate, am I having my cake and eating it?

Comments
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I think...

Steve Kesby |
Steve Kesby's picture

Good shout

cparker87 |

Don't know about the notice but the law says it

spidersong |

£2.5k P A

Roland195 |

.

cparker87 |

Benefits of scheme / revenue neutral

DMGbus |
DMGbus's picture

Revenue Neutral?

Roland195 |

Untrue

mackthefork |

Not sure what you are disagreeing with

Roland195 |

No, I don't know of any big losers, just marginal

mackthefork |