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Flat rate VAT

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  • # 114732

Morning all. Just taken on a client who is a mobile mechanic. Looks like he's approaching the VAT threshold, although until I get full data won't really know. Am wondering whether it's worth considering the flat rate scheme for him - not used it before, so hoping someone could share some pearls of wisdom......

Also, slight concern that he may have already exceeded the threshold - what happens if he has???

Thanks

Louise

  • Fellow PM.Dip
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  • # 114738

LouP said:

Morning all. Just taken on a client who is a mobile mechanic. Looks like he's approaching the VAT threshold, although until I get full data won't really know. Am wondering whether it's worth considering the flat rate scheme for him - not used it before, so hoping someone could share some pearls of wisdom......

Also, slight concern that he may have already exceeded the threshold - what happens if he has???

Thanks

Louise

 Louise,

The Flat Rate VAT is changing from 1st April, please lookup the changes and check the impact of these before you/client decide.

The new applicable rate may be 16.5% which may not be quite as favourable, and will depend on the amount of VATable expenses.

  • Fellow PM.Dip
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  • 398 posts
  • # 114739

I agree with Vip that the new ruling may mean the FRS will not be to his advantage.  I would also presume that the majority of his expenses include  VAT so FRS would unlikely be of benefit.  Personally I'd set him up on the normal vat and look at it after 6 months.

 

Regards

 

Liz

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