im currently running limited company and im vat registered on flat rate 12%
As you know 16.5% percent comming in force.have you got any views on this?
are you staying in or opting out? all constructive inputs welcomed
It’s not been finalised yet.
obviously it has mate check HMRC website
Are they scrapping fuel allowance?
Low Cost Traders, which is what Ltd Co drivers are, is a business whose expenditure on goods (not services) is less than 2% of its gross turnover, or if more than 2% of its turnover, the amount spent on goods is less than £1,000 per year. Therefore a driver earning, for the sake of argument, £30k pa would have to spend between £600 and £1000 pa to qualify. The problem is that the Chancellor has decided that any expenditure on capital items, motor expenses, or subsistence is ignored when working out the 2% or £1,000 threshold. ie the only things you have left to claim on are services, which are not allowed.
It seems as though the Chancellor has decided that goods are costs but services aren’t and that all service businesses are aggressive abusers, and I can’t really see any exception to the advice that service business will need to consider deregistration.
Stanley Knife:
It seems as though the Chancellor has decided that goods are costs but services aren’t and that all service businesses are aggressive abusers,
Being honest there’s enough examples of people on here abusing the rules to prove he has a valid point.
There are many ways to spend a £1000 pa. it’s simply scour mongering tactics aimed to frighten folk out of making the transition to self employment using only their services. Once HMRC realise they’re getting 16.5% of ‘■■■■ all’ instead of 12% of 40k, they will soon change tact.
Honestscott76:
There are many ways to spend a £1000 pa. it’s simply scour mongering tactics aimed to frighten folk out of making the transition to self employment using only their services. Once HMRC realise they’re getting 16.5% of ‘[zb] all’ instead of 12% of 40k, they will soon change tact.
I agree wholeheartedly with this quote, one thing I know about HMRC/Governments is…
They detest the fact that the little man gains a bit but turn a blind eye to the “entrepreneurs” and large corporations that for as long as time began have been screwing over the nation to the tune of billions. Once the Ltd Co’s stop using the FRS Scheme and the revenues to HMRC begin to dwindle then some half wit at the treasury with bring in fresh legislation, costing a small fortune to attempt to recover the revenues that they have already lost.
If the saying…“Rules are for the guidence of wisemen and the obedience of fools” applies to the corporations, then it applies to everyone.
Conor:
Stanley Knife:
It seems as though the Chancellor has decided that goods are costs but services aren’t and that all service businesses are aggressive abusers,Being honest there’s enough examples of people on here abusing the rules to prove he has a valid point.
Abusing the rules with HMRCs blessing since 2007, you mean.
Slight double standards really, whilst HMRC are painting the picture that firms are exploiting the FRS VAT scheme in registering for VAT whilst providing services, with limited costs, good old HMRC have raked in millions of pounds, in VAT revenues from the very firms that they are now calling abusers of the scheme. But of course HMRC dont advertise the fact that they have benefitted out of “abusers”.
robbo99.:
Honestscott76:
There are many ways to spend a £1000 pa. it’s simply scour mongering tactics aimed to frighten folk out of making the transition to self employment using only their services. Once HMRC realise they’re getting 16.5% of ‘[zb] all’ instead of 12% of 40k, they will soon change tact.I agree wholeheartedly with this quote, one thing I know about HMRC/Governments is…
They detest the fact that the little man gains a bit but turn a blind eye to the “entrepreneurs” and large corporations that for as long as time began have been screwing over the nation to the tune of billions. Once the Ltd Co’s stop using the FRS Scheme and the revenues to HMRC begin to dwindle then some half wit at the treasury with bring in fresh legislation, costing a small fortune to attempt to recover the revenues that they have already lost.
There are easy ways to get round this new rule in any case. However, the wise will sidestep it, others will unwisely deregister. I firmly believe the HMRC are specifically targeting the construction industry with this rule.
Honestscott76:
robbo99.:
Honestscott76:
There are many ways to spend a £1000 pa. it’s simply scour mongering tactics aimed to frighten folk out of making the transition to self employment using only their services. Once HMRC realise they’re getting 16.5% of ‘[zb] all’ instead of 12% of 40k, they will soon change tact.I agree wholeheartedly with this quote, one thing I know about HMRC/Governments is…
They detest the fact that the little man gains a bit but turn a blind eye to the “entrepreneurs” and large corporations that for as long as time began have been screwing over the nation to the tune of billions. Once the Ltd Co’s stop using the FRS Scheme and the revenues to HMRC begin to dwindle then some half wit at the treasury with bring in fresh legislation, costing a small fortune to attempt to recover the revenues that they have already lost.
There are easy ways to get round this new rule in any case. However, the wise will sidestep it, others will unwisely deregister. I firmly believe the HMRC are specifically targeting the construction industry with this rule.
I firmly believe that HMRC are not fit for purpose.
Am I the only one that was a tad suspicious ? posted by some one called joker and it happens on the 1st of April 
just had a chat with my accountant today from april flat rate changes so out of the 20% i charge i will only benifit by 0.2 % so that does not even cover my accountants charge for vat so i will be deregistering as of the end of march
also ( and this is not gospel ) hmrc are looking for quarterly accounts by 2020 basically to stop people running up huge bills then dissapearing
with tax outstanding
now you and i know if they went after the mega corps they would get a lot more back but of course mega corp inc have offices full of ex hmrc employees who are happy to point out loop holes all day then come to a sweetheart deal with hmrc
HMRC have been benefitting themselves from the “abusers” of the FRS Scheme for 10 years. For all the money that the “abusers” have gained in VAT payments, HMRC have taken just as much in VAT revenues from the said “abusers”. Funny now the “abusers” are akin to Jack The Ripper in the eyes of HMRC, yet HMRC like be seen as holier than thou.
Have the revenues taken by HMRC from the “abusers” been done so in the true spirit of the rules? Just as HMRC maintain the “abusers” havent acted in the true spirit of the rules by useing the FRS Scheme. Of course all the people that registered for the FRS Scheme were given the green light by yes…HMRC.
Honestscott76:
There are many ways to spend a £1000 pa.
Remember the ruling that you must spend less than 2% of your gross turnover on goods, or if more than 2% of your turnover, the amount spent on goods is less than £1,000 per year.
And then remember that any company in such a position will come under the watchful eye of HMRC. 
robbo99.:
Once the Ltd Co’s stop using the FRS Scheme and the revenues to HMRC begin to dwindle then some half wit at the treasury with bring in fresh legislation, costing a small fortune to attempt to recover the revenues that they have already lost.
Unlike NI and Income Tax VAT is a tax which a company collects on behalf of the Treasury. It is never your money and the cost of not paying it is severe. VAT is only paid by the end user so the latest legislation is actually saving them money.
Stanley Knife:
robbo99.:
Once the Ltd Co’s stop using the FRS Scheme and the revenues to HMRC begin to dwindle then some half wit at the treasury with bring in fresh legislation, costing a small fortune to attempt to recover the revenues that they have already lost.Unlike NI and Income Tax VAT is a tax which a company collects on behalf of the Treasury. It is never your money and the cost of not paying it is severe. VAT is only paid by the end user so the latest legislation is actually saving them money.
I think you will find that a company on the Flat Rate Scheme vat charges vat on their invoices at 20% to their customers and depending on the sector they are in only pays approximately half of it to the Treasury in vat, thus keeping the remainder, completely legal. The rates payable back to HMRC are changing come April.