At the moment i’m on an umbrella scheme but thinking of becoming a ltd company but am getting mixed messages on wether it’s a good idea or not.As a ltd company can i charge my agency vat on the flat rate scheme if i can then i know that would be an advantage to me,some people are telling me i can’t charge them for it others are saying i can iv’e searched on line & it looks as if i can join the scheme but not sure if i can charge the agency with it.
Yes you can use the flat rate scheme. Even if you’re not a Ltd Company and are a sole trader you can.
Even if you couldn’t, keep a decent set of books and an accountant will charge around £250 to certify them as opposed to well over £1000 you’re paying in umbrella company fees.
Once you are VAT registered you have no choice but to charge VAT and indicate it separately on an invoice. The agency won’t care as they’ll be VAT registered so it costs them nothing as they get it all back so don’t worry that your £10hr you bill becomes £10/hr+VAT = £12/hr vat inc.
ok thanks for the quick reply