• 23 Mar 2017

Businesses who use the VAT flat-rate scheme (FRS) can’t reclaim VAT on most purchases, but they can keep a small slice of the VAT they charge to customers. If the business has limited input costs, the VAT retained will more than compensate for the input VAT they can’t reclaim.

From 1 April 2017, such limited cost traders who use the FRS will need to perform a few more steps before completing each VAT return.

Step 1: Work out what has been spent on goods, as opposed to services. Goods are generally anything physical, but supplies of electricity, gas and water are treated as goods. Publications received in paper form are goods, but electronic publications are services. Professional advice and subscriptions are services.

Step 2: Remove from the list of goods any capital items; expenditure on food or drink consumed by the owner or employees; and motor
fuel and parts. Taxi businesses can include motoring expenses.

Step 3: Compare the allowable expenditure on goods with the total sales including VAT for the quarter. If the value of this expenditure amounts to 2% or more of sales and is at least £250, complete the VAT return using the FRS percentage for the trade sector normally used.

Step 4: Where the value of the allowable expenditure on goods is less than 2% of turnover, you must use an FRS percentage of 16.5%. This means the financial benefit of using the FRS is effectively removed.

You may want to opt out of using the FRS from 1 April 2017 and use normal VAT accounting instead. If your sales for the next twelve months are expected to be less than the deregistration threshold (currently £81,000), you may also consider deregistering from VAT. Let’s discuss your options.

Claim VAT on pre-registration costs
VAT
Previous post
Marginal tax hit for Scots
Audit and Assurance
Next post

109 thoughts on “VAT flat-rate changes”

  1. I’m amazed, I have to admit. Rarely do I come across a blog that’s both
    equally educative and amusing, and without a doubt, you have
    hit the nail on the head. The issue is something which too few people are speaking
    intelligently about. I’m very happy that I found this during my search for something relating to this.
    0mniartist asmr

  2. I do not even know how I ended up here, but I thought this post was good.
    I do not know who you are but certainly you are going to a famous blogger if you are not already 😉 Cheers!
    0mniartist asmr

  3. I was excited to discover this site. I need to to thank you for your time
    for this wonderful read!! I definitely savored every
    little bit of it and I have you book-marked to look at new things on your blog.
    0mniartist asmr

  4. You can certainly see your skills within the article you write.
    The arena hopes for more passionate writers such as you who are not afraid to
    mention how they believe. At all times go after
    your heart. asmr 0mniartist

  5. You really make it seem really easy along with your presentation however
    I in finding this topic to be really one thing that I think I’d
    never understand. It kind of feels too complicated
    and very large for me. I am looking ahead in your subsequent submit, I will try to get the dangle
    of it!

  6. What’s up to every body, it’s my first pay a quick visit of
    this web site; this web site includes awesome and truly fine material in favor of visitors.

  7. Hi there would you mind letting me know which hosting company you’re
    utilizing? I’ve loaded your blog in 3 different internet browsers and I must say this blog loads a lot quicker then most.
    Can you recommend a good internet hosting provider at a fair price?
    Kudos, I appreciate it!

  8. Thanks for sharing your info. I truly appreciate your efforts and I am waiting for your further write ups thank you once again.

  9. Hello there! This article couldn’t be written much better!
    Going through this post reminds me of my previous roommate!
    He constantly kept preaching about this. I’ll send this information to him.
    Pretty sure he’s going to have a very good read. Many thanks for sharing!

  10. I needed to thank you for this good read!! I absolutely
    enjoyed every bit of it. I’ve got you saved as a favorite to check out
    new stuff you post…

  11. Have you ever heard of second life (sl for short). It is basically a online game where you can do anything you want. sl is literally my second life (pun intended lol). If you want to see more you can see these sl articles and blogs

  12. scoliosis
    I blog frequently and I genuinely thank you for your content.
    This great article has truly peaked my interest. I’m going to book mark your blog and keep checking for
    new information about once a week. I opted in for your RSS feed
    as well. scoliosis

  13. scoliosis
    Greetings! I know this is kind of off topic but I was wondering if you knew where
    I could locate a captcha plugin for my comment form?
    I’m using the same blog platform as yours and I’m having trouble finding
    one? Thanks a lot! scoliosis

  14. Have you ever heard of second life (sl for short). It is essentially a video game where you can do anything you want. sl is literally my second life (pun intended lol). If you want to see more you can see these Second Life websites and blogs

  15. scoliosis
    always i used to read smaller articles which as well clear
    their motive, and that is also happening with this post which
    I am reading at this place. scoliosis

  16. Have you ever heard of second life (sl for short). It is essentially a game where you can do anything you want. Second life is literally my second life (pun intended lol). If you would like to see more you can see these sl articles and blogs

  17. Have you ever heard of second life (sl for short). It is essentially a game where you can do anything you want. Second life is literally my second life (pun intended lol). If you want to see more you can see these second life authors and blogs

  18. I got this web page from my pal who informed me about this site
    and at the moment this time I am browsing this site and reading
    very informative content here.

  19. Have you ever heard of second life (sl for short). It is essentially a video game where you can do anything you want. sl is literally my second life (pun intended lol). If you would like to see more you can see these second life authors and blogs

  20. Hmm it seems like your website ate my first comment (it was extremely long) so
    I guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog.
    I as well am an aspiring blog blogger but I’m still new to everything.
    Do you have any recommendations for beginner blog writers?

    I’d certainly appreciate it.

  21. Have you ever heard of second life (sl for short). It is essentially a online game where you can do anything you want. SL is literally my second life (pun intended lol). If you would like to see more you can see these sl authors and blogs

  22. Have you ever heard of second life (sl for short). It is basically a online game where you can do anything you want. Second life is literally my second life (pun intended lol). If you want to see more you can see these second life articles and blogs

  23. Have you ever heard of second life (sl for short). It is essentially a video game where you can do anything you want. Second life is literally my second life (pun intended lol). If you want to see more you can see these Second Life websites and blogs

  24. Excellent weblog here! Also your web site so much up fast!
    What web host are you using? Can I am getting your associate link on your host?
    I desire my web site loaded up as fast as yours lol

  25. Have you ever heard of second life (sl for short). It is basically a game where you can do anything you want. Second life is literally my second life (pun intended lol). If you want to see more you can see these sl authors and blogs

  26. Heya exceptional blog! Does running a blog similar to this require a lot
    of work? I’ve no expertise in programming but
    I was hoping to start my own blog in the near
    future. Anyhow, should you have any suggestions or techniques for new blog owners please share.
    I understand this is off subject nevertheless
    I simply needed to ask. Cheers!

  27. Have you ever heard of second life (sl for short). It is basically a game where you can do anything you want. sl is literally my second life (pun intended lol). If you would like to see more you can see these second life articles and blogs

  28. Have you ever heard of second life (sl for short). It is essentially a video game where you can do anything you want. sl is literally my second life (pun intended lol). If you would like to see more you can see these second life articles and blogs

  29. Have you ever heard of second life (sl for short). It is basically a video game where you can do anything you want. Second life is literally my second life (pun intended lol). If you want to see more you can see these sl websites and blogs

  30. Have you ever heard of second life (sl for short). It is basically a online game where you can do anything you want. sl is literally my second life (pun intended lol). If you want to see more you can see these sl articles and blogs

  31. Have you ever heard of second life (sl for short). It is essentially a video game where you can do anything you want. SL is literally my second life (pun intended lol). If you would like to see more you can see these sl articles and blogs

  32. Have you ever heard of second life (sl for short). It is basically a game where you can do anything you want. sl is literally my second life (pun intended lol). If you would like to see more you can see these Second Life websites and blogs

  33. Have you ever heard of second life (sl for short). It is basically a online game where you can do anything you want. SL is literally my second life (pun intended lol). If you would like to see more you can see these sl articles and blogs

  34. Have you ever heard of second life (sl for short). It is basically a game where you can do anything you want. SL is literally my second life (pun intended lol). If you want to see more you can see these sl articles and blogs

  35. Have you ever heard of second life (sl for short). It is essentially a game where you can do anything you want. sl is literally my second life (pun intended lol). If you want to see more you can see these second life websites and blogs

  36. Have you ever heard of second life (sl for short). It is essentially a online game where you can do anything you want. SL is literally my second life (pun intended lol). If you want to see more you can see these sl articles and blogs

  37. Greetings from Florida! I’m bored at work so I decided to check out your website
    on my iphone during lunch break. I enjoy the info you provide here and can’t
    wait to take a look when I get home. I’m shocked at how quick
    your blog loaded on my phone .. I’m not even using WIFI, just 3G ..
    Anyhow, good blog!

  38. Hi there, You’ve done an incredible job. I will definitely digg it and personally suggest to my friends.
    I’m confident they’ll be benefited from this website.

  39. I think that everything composed made a great deal of sense.

    But, think about this, what if you wrote
    a catchier title? I am not saying your content isn’t good,
    however what if you added a title that makes people desire more?
    I mean VAT flat-rate changes – Novakovic & Co is kinda plain. You might peek at Yahoo’s home page and see how they create post
    headlines to get people interested. You might try adding a video or
    a pic or two to grab people interested about what you’ve got to say.
    Just my opinion, it might make your posts a little livelier.

  40. Thank you, I’ve recently been searching for
    info about this subject for ages and yours is the greatest I have came upon so far.
    But, what about the conclusion? Are you certain concerning the supply?

  41. Hello! I’ve been reading your website for a while now
    and finally got the courage to go ahead and give you a shout
    out from Houston Tx! Just wanted to tell you keep up the good job!

  42. Normally I don’t read post on blogs, but I wish to
    say that this write-up very forced me to try and
    do it! Your writing taste has been amazed me. Thank you, very nice post.

  43. I have been exploring for a little for any high-quality articles or weblog posts in this
    kind of house . Exploring in Yahoo I at last stumbled
    upon this web site. Reading this information So i am happy to convey that I have a very good uncanny feeling I came upon just what I needed.
    I so much no doubt will make certain to don?t put out of your mind this web site and provides it a glance
    regularly.

  44. Thanks for a marvelous posting! I actually enjoyed reading it, you are a great author.I will remember to bookmark your blog and may come back down the road.
    I want to encourage you to ultimately continue your great job, have a nice holiday weekend!

  45. An interesting discussion is worth comment. I do believe
    that you need to publish more on this topic,
    it may not be a taboo matter but usually people do not talk about these topics.
    To the next! Best wishes!!

  46. Howdy! Do you know if they make any plugins to assist with
    SEO? I’m trying to get my blog to rank for some targeted keywords
    but I’m not seeing very good success. If you know of any please share.
    Cheers!

  47. Greetings! This is my first comment here so I just
    wanted to give a quick shout out and say I really enjoy reading
    through your blog posts. Can you recommend any other blogs/websites/forums that cover
    the same subjects? Many thanks!

  48. I simply couldn’t depart your web site prior to suggesting that I extremely loved the standard info an individual provide
    to your visitors? Is gonna be back steadily in order to inspect new posts

  49. Great post. I was checking constantly this blog and I’m impressed!
    Very useful information specially the last part 🙂 I care
    for such info a lot. I was seeking this certain information for
    a long time. Thank you and good luck.

  50. My programmer is trying to convince me to move to .net from PHP.
    I have always disliked the idea because of the expenses.
    But he’s tryiong none the less. I’ve been using Movable-type on a number of websites for
    about a year and am anxious about switching to another
    platform. I have heard good things about blogengine.net.
    Is there a way I can transfer all my wordpress content into it?

    Any help would be really appreciated! scoliosis surgery https://0401mm.tumblr.com/ scoliosis surgery

Leave a Reply

Your email address will not be published.