VAT (Flat rate vat)

Spinxy

can anyone explain how this works as i belive it could be better for me than the standard VAT thingy!!!
at the moment i collect 17.5% on all services and pay that to the vat paople minus vat i have spent!!

The main service i provide is really my time, only materials i buy are things like paper, ink, my PA services etc etc.
i normally collect around £2500 in vat quarterly and can only keep approx £400 for Vat i have spent out!!!
from that is it possible to maybe predict what i will be able to keep if i was to go flat rate!!!
also if flat rate does work out better for me is it at all possible to adjust vat returns allready submitted and possibly claim money back?!?!

all help would be very greatful

martindow

I would talk to the VAT people via their helpline. I've always found them extremely helpful. Here's a relevant page from their site
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_InfoGuides&id=HMCE_CL_000345&propertyType=document

Spinxy

martindow wrote:

I would talk to the VAT people via their helpline. I've always found them extremely helpful. Here's a relevant page from their site
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_InfoGuides&id=HMCE_CL_000345&propertyType=document

Cheers, found what i needed on their website, i would be better off going onto the flat rate scheme.

martindow

Good - it must be a nice feeling knowing your VAT bill will go down! Can you claim retrospectively?

Spinxy

martindow wrote:

Good - it must be a nice feeling knowing your VAT bill will go down! Can you claim retrospectively?

it is quiet nice, unfortunately you can't claim retrospectively, i didn't find that out on the net, i found out on the phone, i have the vat lady coming to see me mon, as i've been catching up on personal debt and was behind with my vat accounting so i have missed the last 2 payments, from what she says i can't even start on the flat rate for last 2 missed payments!! you need to apply for the flat rate scheme, and she said they have however long it takes them to process then it will start on the next quarter!!!