I have just purchased my first tractor unit to service some traction only work. I was wondering if any operators use the flat rate vat scheme which sets the vat factor for the transport industry at 10%
Obviously its easier to operate due to not claiming vat on purchases (capital items over £2,500.00 such as truck are OK) but fuel is a no-no.
Any feedback would be a great help, also if anyone knows of any traction only work available around the North Yorkshire area and average rates that would also be a help.
As I assume you will be working for other vat registered companies I’d stick to standard rate vat, you will be able to claim back all the vat on your fuel, and bill out your jobs +20% vat. You’re customers won’t bother as they can claim your vat back.
Sorry for sounding a bt negative, and i know there’s Not a lot of detail in your post, but shouldn’t you get work and find out about rates before you get the truck?
As far as I can see, the only advantage is that it slightly simplifies book-keeping, although I’d say book-keeping for one truck is fairly simple anyway. What other potential advantages are there?
set up another ltd company in a similar name.
main company on normal VAT rate. this way you’ll get back all the VAT on your fuel.
other company bills every other customer at 20% VAT, but gives you a 10% kick back.
limeyphil:
set up another ltd company in a similar name.
main company on normal VAT rate. this way you’ll get back all the VAT on your fuel.
other company bills every other customer at 20% VAT, but gives you a 10% kick back.
Or, go to your local corner shop, buy a box of pens and ask for a VAT reciept…VOILA! You get a new VAT number and a 20% profit
