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Will flat rate VAT rise?
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geeba88
Posts: 247 Forumite
in Cutting tax
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
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
0
Comments
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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.com0 -
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
HTH0 -
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.com0
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