Will flat rate VAT rise?

geeba88

Hi

I'm a one man limited company (IT Contractor) on flat rate VAT. Is it likely that the flat rates will increase as a result of the rise in standard VAT?

If not, am I right to assume that the VAT increase is beneficial to me, as i'll invoice my clients at 20% but pay HMRC at my existing flat rate percentage?

Thanks

System

They probably will, but as an IT contractor myself on flat rate then I hope they won't.

You are correct that you will bill at 20% but only pay HMRC at whatever the flat rate is.

Llyllyll

This: http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-rise-guidance.pdf#page24 (pg 24) was taken from here: http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-increase.htm

HTH

System

The new flat rates look pretty good. IT Consultancy goes up from 13% to 14.5% - an effective gain.

Slinky

Yes it's an ill wind that blows nobody any good, I'm 1.5% to the good on this.