AndySCL
Member Since: 24th Nov 2016
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I’m an industry professional who launched my own logistics consultancy, Straightforward Consultancy Ltd (SCL) after a 30 year career in international logistics, working for market leading logistics providers such as DB Schenker, Kuehne & Nagel and DHL Global Forwarding in operations, sales and management and travelling internationally, particularly to the USA and Asia. I felt, in an increasingly complex and confusing world of logistics, that small-medium sized importers and exporters really needed a source of independent advice and expertise to help them to reduce costs, lessen their workload, remain Customs compliant and provide them with expert advice and support day-to-day. We've been pretty successful and in March 2016, we celebrated our 6th year in business and we've helped so many companies here in the North West along the way. If you take a look at our website, blog, LinkedIn and Twitter you will see that we're knowledgable, friendly and our customers rave about the impact we've had on their businesses. I'm also a panel judge at the Global Freight Awards run by Lloyds Loading List, the leading industry publication and have been on the panel for 2 years.
My answers
Hi Rebecca
Could you clarify how things will work for companies on the Flat Rate VAT Scheme, of course they pay lower VAT percentage however it's levied on the VAT inclusive turnover and they can't set input VAT against it. You talk about them being eligible for deferral of MTD til Oct-19?Are these companies not expected to comply with the new rules from Apr-19 and will software be able to cope with the way VAT is actually calculated. Must the client use accountancy software or can they submit themselves?
Thanks Kevin
Our accountant was planning to charge £20/month for the service. Maybe worth a try.
Andy
Thanks Kevin
Our accountant was planning to charge £20/month for the service. Maybe worth a try.
Andy
Thanks Kevin
OK, I understand, and will it be suitable for companies using the FRVS?
Andy
Hi Rebecca
Will this software package be able to cope with companies who use the Flat Rate VAT Scheme?
Thanks
Andy
In our business, we use the FRS scheme and I have worked out that we spend around £7K/annum on VAT-able supplies which cover a myriad of things but are mainly services (eg accountant, IT support, phone and web related) and what puzzled me is that the gov.uk website says there would be an 8 week consultation period for businesses to provide feedback but there was no detail on process/contact info. Can anyone also advise why only "goods" are allowed in the limited cost trader calculation and what is actually meant by "goods" within the new rules for FRS? I called VAT helpline in Dec and put these questions to them, they knew nothing about FRS changes and said to send written (no phone number offered) feedback to:-
HM Revenue and Customs - National Registration Unit
Imperial House
77 Victoria Street
Grimsby
DN31 1DB
United Kingdom
I can understand why HMRC would want to exclude ultra-low cost businesses from the FRS however I don't understand why VAT-able services aren't seen as true costs to a business. Furthermore, this is going to add more complexity and work to the tasks we all face when running our SMEs. We will either jump in and out of the FRS quarter by quarter or have to do a more involved VAT standard return. What was it David Cameron said about reducing red tape....? Why can't government target the abusers as mentioned above rather than cause the 90+ percent of compliant businesses who use the scheme as intended? The answer is, few people in government have ever run a business.
In our business, we use the FRS scheme and I have worked out that we spend around £7K/annum on VAT-able supplies which cover a myriad of things but are mainly services (eg accountant, IT support, phone and web related) and what puzzles me is that the gov.uk website says there will be an 8 week consultation period for businesses to provide feedback but there is no detail on process/contact info, which is odd. Can anyone also advise why only "goods" are allowed in the limited cost trader calculation and what is actually meant by "goods" within the new rules for FRS? I called VAT helpline today and put these questions to them, they knew nothing about FRS changes and said to send written (no phone number offered) feedback to:-
HM Revenue and Customs - National Registration Unit
Imperial House
77 Victoria Street
Grimsby
DN31 1DB
United Kingdom
I can understand why HMRC would want to exclude ultra-low cost businesses from the FRS however I don't understand why VAT-able services aren't seen as true costs to a business.