Is there anybody who is Ltd Company & on the Flat rate Vat scheme?
If so once i’ve claimed my Vat from the agency & paid Hmrc there percentage does the remaining money then have to be Taxed with the rest of my Wages or will I get that tax free >
taxed if i remember rightly mate.
Hi there
Your company pays the flat rate VAT tax, for me it’s 15% your salary is taxed, dividends are taxed to the company.
Hope this helps
Cheers
Paul
…So why would anyone elect to pay tax when they cannot work enough hours normally to get past normal offsets? 
Because for me it is a 10 percent pay rise.
Charge 20 pay 10 percent to hmrc and job is a good one…
trubster:
Because for me it is a 10 percent pay rise.Charge 20 pay 10 percent to hmrc and job is a good one…
Spot on 
Stanley Mitchell:
trubster:
Because for me it is a 10 percent pay rise.Charge 20 pay 10 percent to hmrc and job is a good one…
Spot on
Not spot on. Close but not quite there.
It’s actually an 8% pay rise, as the 10% you pay to HMR&C is 10% of the gross invoice value, not the net.
So you invoice £100+VAT = £120. You pay 10% of £120 to HMR&C = £12. You are left with £108. That’s 8% more than the £100 you would have had without the VAT registration.
Paul
Excuse me for being a bit daft here but can someone explain which category we are classifiying our selves under
I have recently set myself up under the scheme and my accountant has got me paying 12% rate to HMRC, reduced to 11% for the first year, which I do understand but how is everyone else getting it down to 10%
Cheers
Matt
Matty72:
Excuse me for being a bit daft here but can someone explain which category we are classifiying our selves underI have recently set myself up under the scheme and my accountant has got me paying 12% rate to HMRC, reduced to 11% for the first year, which I do understand but how is everyone else getting it down to 10%
Cheers
Matt
IIRC 12% is the ‘if your job isn’t listed elsewhere’ rate, so your accountant is probably relying on the fact that LGV Ltd Co. is such a grey area. Those looking at the 10% band are being categorised under ‘Transport’. It’s worth making sure your accountant has definitely got it right because the VAT man is a far worse than HMRC if you get things wrong.
You class your self in the transport sector. As repton says you charge 20% vat and pay hmrc back 10% of your what ever the total amount your company has earned if the 3 month period. You cant claim all the usual vat things on top of the flat rate. But it is much easier to do than standard vat. You can claim VAT back on purchases over 2000£ once a year
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Thanks for your posts at least I now know,My accountant has me under Transport too so will be at 10% but 9% for the first year
Surely my accountant is right then as I am in the labour supply industry, I don’t transport anything, I just supply myself as labour to companies that do transport stuff.
Matty72:
Surely my accountant is right then as I am in the labour supply industry, I don’t transport anything, I just supply myself as labour to companies that do transport stuff.
Yes, & this is where it gets interesting because the term ‘driver’ doesn’t appear in the list of trades and the only ‘labour’ mentioned (in the construction sector) is set at 14.5% so it could potentially be a minefield. http://www.hmrc.gov.uk/manuals/frsmanual/FRS7300.htm
When I was registered a few years ago (not as a driver) I was told by HMRC advice (when you could speak to them direct) that as long as the sector you were registered in was accepted from your application then you shouldn’t have a problem and it was only in rare cases that the sectors are reviewed and altered at a later date.
15% for me…
Paul
sonflowerinwales:
15% for me…
Paul
Can’t actually see a 15% but I suppose you are at least erring on the side of safety…
tallyman:
Matty72:
Surely my accountant is right then as I am in the labour supply industry, I don’t transport anything, I just supply myself as labour to companies that do transport stuff.Yes, & this is where it gets interesting because the term ‘driver’ doesn’t appear in the list of trades and the only ‘labour’ mentioned (in the construction sector) is set at 14.5% so it could potentially be a minefield. http://www.hmrc.gov.uk/manuals/frsmanual/FRS7300.htm
When I was registered a few years ago (not as a driver) I was told by HMRC advice (when you could speak to them direct) that as long as the sector you were registered in was accepted from your application then you shouldn’t have a problem and it was only in rare cases that the sectors are reviewed and altered at a later date.
Flat Rate Scheme for small businesses (VAT Notice 733) - GOV.UK
It should be 10% not 15 or 14.5 or anything else. As mentioned, there is no specific category for driver so you have to choose the closest match. When I did it the closest option was truck hire with driver, which then morphed into ‘movement of goods by road transport’ or something like that once it accepts the registration on the next page. It also provides you with a box to type in something more specific. I entered ‘freelance truck driver’ and haven’t had any issues.