I’ve just checked. You’re correct, my mistake. Those firms with profit below £50k will stay at 19%.
As I have repeatedly said I don’t like paper work I leave that to the accountant , I just focus on doing the work ???, but will soon be down sizing anyway .
You need to be under 135k to register for it and can remain on the scheme until you reach 230k. Surely if you've just registered for it you haven't suddenly jumped over £150k mate? It would be a gradual increase usually. Wondering if you've missed a trick there is all.
So you went from £85K to £150K within a year? You can't now go on the flat rate but your Accountant hasn't advised you very well especially if the majority of your work is residential.
Thats what I'm thinking. With that kind of a jump you'd be able to look monthly at the rolling 12 month average like I am. The moment you exceed 85 you can join the flat rate scheme and then remain on it until you reach 230. If my accountant let me slip through that particular net I'd fire him. As it's on a 12 month rolling average I'd be a little concerned that you would probably have slipped over the threshold earlier than you think @DCDom, Part timer detailed above that you can be fined if you make the mistake of thinking it's based on the financial year not a rolling 12 month cycle.
Yeah that’s true. Still would be worth using the fixed rate scheme even if it’s only for a short period of time. Turnover of up to 230 can be a massive saving, thousands over a few months. Mental mate, money to burn ?
Yeah but the cost back is nothing compared to what you pay in VAT over a 1 year peiod... it just gets knocked off your VAT bill... its not a cheque for you where u go and cash it in. Lol ?
Lol he will need a hell of a lot of £5 jobs to be vat registered in the first place ???
Probably not bother then and stay under the £80k threshold which is coming closer every year. ?
Going VAT reg is very tough mate but in the long run it will be worth it for yourself and for your future, in the short term it may be hard but once u been VAT reg for a few number of years u will find that a lot of things will fall in to place aswell as a lot of new doors opening up for you ? Good luck
Aye, I'm learning quick, I like the part "getting my Vat back" but didn't realise they wanted all my Vat I collected, that's day light robbery. The only time I will go vat registered is when I begin to do work for Factors. They seem to stipulate that the company doing the work need to be Vat reg and limited company. At the moment I'm swimming with the tide and even froze Checkatrade account because I'm too busy. Getting bigger jobs now that last a few days so taking the odd day off in-between to relax and mend things. Happy now to pay vat on things because I would need to charge another 20% on my prices. ?
If most of your work is commercial then going registering for VAT is a good plan as they will claim it back anyway so no more costly to most companies. If you do mainly domestic then avoid VAT registration if you can as it just adds 20% to their bills or you take a 20% cut in your earnings!
I'm getting more commercial now but I see what you mean. There eventually comes a tipping point and usually involves hiring someone full time.
