RE: Flat rate scheme VAT
Comments
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We have taken quite a few clients off
AAT Level 2&3 - 2016
AAT Level 4 - 2017
Personal Tax, Business Tax and External Auditing
ACA/CTA -
Certificate Level - Jan 20190 -
Yes and No.
Some were on 14% anyway and would never have qualified to stay due to their turnover.
I have one client (11%) who is mostly ok to remain on the lower rate but I have to calculate every quarter whether they qualify (and advise whether they need to go and buy more cartridges/printing paper before the end of the quarter!). I thought about moving them on the annual VAT scheme but it doesn't take that much effort to do the calculations every quarter.0 -
It's a shame we can't charge for this type of advice as the gain switching the client over is so small.
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We only have a few clients on flat-rate (anything from 6.5% up to I think 12.5%) but their purchases are all sufficient to retain their percentage rather than be shunted onto the 16.5% limited cost rate. There is one that I particularly have to check each quarter (and then ask for her business utility bills to push her over the threshold).
There is one other client who's recently arranged to buy his goods in bulk in the UK and then sell them in the USA (where profit margin is higher for him, I imagine) - as long as he does so through the same company of course (he also has a US-incorporated business), in which case he'll have a large amount of purchases and all zero-rated sales, so I'll be taking him out of flat-rate for sure.Accounts Executive, ғɪᴀʙ ᴍᴀᴀᴛ
QBO & Xero certified advisor
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@KoopaCooper I seem to remember that although gas and electricity are classed as goods for the purpose of FRS limited cost trader if there is any private use it is disallowed altogether. Something to watch out for when client uses their home as office.0
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Yup, gas and electric has to be exclusively for business to count: https://www.gov.uk/government/publications/vat-notice-733-flat-rate-scheme-for-small-businesses/vat-notice-733-flat-rate-scheme-for-small-businesses
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I do remember that one, yes.
They did previously use their home as office, but were able to claim their phone bills to tip over the threshold (as they had a separate line for business use only), but have recently rented a space outside of the home specifically for office use, so it's more clear-cut now.Accounts Executive, ғɪᴀʙ ᴍᴀᴀᴛ
QBO & Xero certified advisor
AAT
Level 2 Certificate in Accounting - 17 Jun 2015
Level 3 Diploma in Accounting - 22 Jan 2016
Level 4 Diploma in Accounting - 19 Dec 2017
MAAT - 27 Mar 2018
ACCA
Advanced Diploma in Accounting and Business...
F4 Corporate and Business Law - 4 Jun 2019
F5 Performance Management - 15 July 2019
F6 Taxation (United Kingdom) - 3 Dec 2019
F8 Audit and Assurance - 2 Mar 20200
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