VAT reduction

Slinky

What's the betting if the VAT rate is reduced, those of us on the flat-rate scheme get stuffed on it and lose out!

Pennywise

Highly likely I'm afraid. I'm not holding my breath that any proposed reduction has been properly thought through and that the consequences have been properly investigated. After all, the other recent tax changes have been a monumental foul-up - within minutes of the announcements, the professional commentators have found problems with everything they've announced, yet the civil servants who propose these changes and have weeks if not months thinking about them rarely consider the consequences. I think the FRS is only one potential time bomb - there are plenty of other areas that will suffer from "the law of unintended consequences". I can't say I'm looking forward to tomorrow at all.

longforgotten

I hope there is a nice and easy way of changing/adding the tax rate in all the accounts/book-keeping software out there. Rather than the software 'people' having to send out updates.

Slinky

I've got sage instant accounts. When I went from being non-registered to registered, I had to manually change all my existing accounts.

The reason for doing this was I went from T9 to T1 on my codes, have just realised you can edit code T1 from 17.5% to 15%

katieeloise

What about cash accounting VAT ? Obviously the products we have already paid for will be 17.5% any changes will mean losing out as can only add the new rate....

vivatifosi

I've just come back on line after a weekend off and your question was exactly the same as mine Slinky, as I too am on the flat rate scheme.

Having said that, all of the changes so far since I started up my small business four years ago (upping Corporation Tax, taxing dividends, etc) have made me think that this Chancellor/Prime Minister (which ever hat he rather than the Darling lapdog is wearing at the moment as after coveting one for all those years he seems loathe to give up the other) has absolutely no interest in small businesses. Still, hopefully I'll be proved wrong...

Slinky

Thanks Mr Darling, I'm over £100 a month worse off now. Don't think the postponement of corp tax will do much to improve things.

Slinky

longforgotten wrote: »

I hope there is a nice and easy way of changing/adding the tax rate in all the accounts/book-keeping software out there. Rather than the software 'people' having to send out updates.

Just had another look at this, in Sage you can change the T1 code from 17.5% as being standard rate to 15% as being standard rate, so is actually quite straightforward.

McAzrael

Slinky wrote: »

Just had another look at this, in Sage you can change the T1 code from 17.5% as being standard rate to 15% as being standard rate, so is actually quite straightforward.

You can (on V11 of Line 50 anyway) also set up T10 (or any spare number) as a 15% code and tick the box so that it is included in the return. This should make it easier to handle the mish-mash of old and new rate invoices which will be arriving over the coming weeks.

JasonLVC

http://www.hmrc.gov.uk/pbr2008/measure1.htm

Have a look at Appendix E.

HMRC have hanged he Flat Rate tables to reflect the change in VAT so not so bad after all folks!!.

Slinky

JasonLVC wrote: »

http://www.hmrc.gov.uk/pbr2008/measure1.htm

Have a look at Appendix E.

HMRC have hanged he Flat Rate tables to reflect the change in VAT so not so bad after all folks!!.

I'm £100 worse off a month even with having to pay over 1% less with the adjustment to the FRS rate. :cool: