Turnover for Income Tax using VAT Flat Rate Scheme
Sandy Dog
Registered Posts: 25 Dedicated contributor 🦉
Anyone know the answer to this?
If an electrician is VAT registered and completes a job for a builder under the CIS scheme for £250.00 excl VAT and his labour element is £150.00 then the builder should deduct £30.00 for CIS, making the invoice::confused1:
Work 250.00
VAT 50.00
Charge to builder 300.00
Less CIS £150.00 x 20% (30.00)
Payable by builder 270.00
Further, if the electrician is using the flat rate scheme at 9.5% then his VAT liability is £300.00 x 9.5% = £28.50 So after paying HMRC £28.50 of the £50.00 VAT the electrician is left with £21.50
Is the electrician’s income tax calculated on the £250.00 or the £271.50 (250.00 + 21.50) or other?
If an electrician is VAT registered and completes a job for a builder under the CIS scheme for £250.00 excl VAT and his labour element is £150.00 then the builder should deduct £30.00 for CIS, making the invoice::confused1:
Work 250.00
VAT 50.00
Charge to builder 300.00
Less CIS £150.00 x 20% (30.00)
Payable by builder 270.00
Further, if the electrician is using the flat rate scheme at 9.5% then his VAT liability is £300.00 x 9.5% = £28.50 So after paying HMRC £28.50 of the £50.00 VAT the electrician is left with £21.50
Is the electrician’s income tax calculated on the £250.00 or the £271.50 (250.00 + 21.50) or other?
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Comments
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£271.50.0
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Agree.0
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Definately
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Thanks for the advice. So, cynically, what the VAT man gives the income tax man takes away!0
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I think it is their mantra
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