Warwicktrucker:
I wish there was a simple black and white answer to this at the moment but there doesn’t seem to be. As I mentioned previously 3 phonecalls to the Revenew allready has resulted in 3 different answers, so they dont seem to know themselves!
I
If you write to them rather than speak to the phone clerks you will get a specific answer, in black and white too !!!
Yep, wanted to try and find out the answer without contacting them in writing, for obvious reasons. Heres a gun, shoot me with it lol
Mike-C:
I’d be very wary of using the flat rate scheme as a sole trader driver. . . In any event, it doesn;t matter what anyone here thinks, just hope it all stands up to scrutiny if you’re ever called in to explain.
Been registered for VAT 5 years and had visits from both the Vatman and HMRC in that time with no problem. In fact they were quite helpful with a few pointers.
I run a Ltd Training Company. I am registered for VAT and have been finding it a right pain becasue I don’t really buy anything that has vat on to claim back - so I always end up having to pay the vat over.
All the fees I pay to JAUPT and people like that are 0% vat. A lot of the trainers I deal with aren’t vat regaistered either.
Then I heard about the flat rate scheme and I will be registering for it this week. I have been told my rate will be 12%, so charge 20% then keep 8!! Sounds good to me.
VAT returns are much easier. Declare your income then give them the % of it they asked for.
Conor:
Go learn about the flat rate VAT scheme. For transport, the rate is 10%. VAT is still charged at 20% but you cannot claim VAT on expenses, only the flat 10%. So you charge VAT at 20% but pay HMRC at 10%. You get to pocket the difference.
10% for Transport, When youre just a Driver and no Truck to claim as your own, How could you claim the VAT allowance as a Transport company?
TRANSPORT SECTOR. When you look at the other categories, they don’t specify every single job do they?
Warwicktrucker:
The grey area is whether as a LTD company driver you qualify as a haulage company, yes im a company working in the haulage business, but dont have my own truck.
I
It doesn’t matter because it is the TRANSPORT SECTOR, not haulage company. If you look at the IT sector, it is one thing. There are hundreds of different types of company in the IT sector. I do three of them alone and used to do a fourth. Yet each of those is not specifically listed.
Warwicktrucker:
The grey area is whether as a LTD company driver you qualify as a haulage company, yes im a company working in the haulage business, but dont have my own truck.
I
It doesn’t matter because it is the TRANSPORT SECTOR, not haulage company. If you look at the IT sector, it is one thing. There are hundreds of different types of company in the IT sector. I do three of them alone and used to do a fourth. Yet each of those is not specifically listed.
Cheers Conor, good point. Thanks everyone, after my first post on this site and in just 24 hours I have probably more usefull opinions/examples, than I had from calling various accountants and the VAT themselves. Will keep charging the VAT, thanks again
shep532:
Then I heard about the flat rate scheme and I will be registering for it this week. I have been told my rate will be 12%, so charge 20% then keep 8!! Sounds good to me.
VAT returns are much easier. Declare your income then give them the % of it they asked for.
Pete
AFAIK you can only register for the scheme within the 1st year of VAT registration
shep532:
Then I heard about the flat rate scheme and I will be registering for it this week. I have been told my rate will be 12%, so charge 20% then keep 8!! Sounds good to me.
VAT returns are much easier. Declare your income then give them the % of it they asked for.
Pete
AFAIK you can only register for the scheme within the 1st year of VAT registration
DOesn’t seem to be the case. It is actually a further 1% discount within your first year - so I would charge 20% and keep 9%
Filled in the application form today and quite simple.
I’m a Limited company, one director on the flat rate scheme for “Management consultant”.
I charge VAT on all my invoices at 20%, then every 3 months pay Mr HMRC 14.5% of the total earnings.
Simple, an extra pile of wedge in my pocket for very little work.
Cheers
Paul
