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Will flat rate VAT rise?

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geeba88
geeba88 Posts: 247 Forumite
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

Comments

  • System
    System Posts: 178,346 Community Admin
    10,000 Posts Photogenic Name Dropper
    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.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • System
    System Posts: 178,346 Community Admin
    10,000 Posts Photogenic Name Dropper
    edited 24 June 2010 at 7:06PM
    The new flat rates look pretty good. IT Consultancy goes up from 13% to 14.5% - an effective gain.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Slinky
    Slinky Posts: 11,012 Forumite
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