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https://www.gov.uk/government/publications/draft-legislation-vat-tacklin...
Doesn't say anything more than what we know already. Looks like it falls back on the VAT definition of 'goods' and 'services'.
So, £2,000 of stationery and computer consumables for everyone each year?
Exactly - a company just under the £2k barrier each year, but saves about £6k per annum under FRS. So, a few extra reams of paper for the fire and a couple of extra boxes of Biros for the kids. Job done.
The explanatory note for the VAT changes seems very odd.
They state that the are 411,000 FRS businesses
And they think 123,000 have limited costs.
BUT only 4,000 businesses will go onto the "normal" VAT scheme. This is clearly absurd as virtually all of our FRS scheme members will be going onto the normal scheme as they will incur a fair amount of services with VAT on, such as our fees for starters!
It is as if the explanatory note was written for "goods and services", and then the "services" crossed out later on.
The explanatory note for the VAT changes seems very odd.
They state that the are 411,000 FRS businesses
And they think 123,000 have limited costs.BUT only 4,000 businesses will go onto the "normal" VAT scheme. This is clearly absurd as virtually all of our FRS scheme members will be going onto the normal scheme as they will incur a fair amount of services with VAT on, such as our fees for starters!
It is as if the explanatory note was written for "goods and services", and then the "services" crossed out later on.
Perhaps we could offer free accountancy services with the purchase of a box of paper. The box would cost as much as their previous accountancy fees.
I'd have to buy in more paper which would help my FRS issue too.
ireallyshouldknowthisbut wrote:
The explanatory note for the VAT changes seems very odd.
They state that the are 411,000 FRS businesses
And they think 123,000 have limited costs.BUT only 4,000 businesses will go onto the "normal" VAT scheme. This is clearly absurd as virtually all of our FRS scheme members will be going onto the normal scheme as they will incur a fair amount of services with VAT on, such as our fees for starters!
It is as if the explanatory note was written for "goods and services", and then the "services" crossed out later on.
Perhaps we could offer free accountancy services with the purchase of a box of paper. The box would cost as much as their previous accountancy fees.
I'd have to buy in more paper which would help my FRS issue too.
This really is crap legislation isn't it. If the finanical benefit of 'getting around it' is in excess of the cost, then it's logical to do so. Even if it means incurring artificial costs.
Either reform it (the flat rate scheme) properly, or remove it entirely.
Well it appears that I am an aggressive abuser of the vat flat rate scheme.
I am also an aggressive abuser of the personal allowance.