Back dating vat dating by social community network
After losing the £400 VAT claim on Expenses, the net FRS gain is £1,200.
This FRS gain would be added to the Net Profit and therefore would be subject to Corporation Tax.
telephone, software, insurance, bank charges and accounting fees will count as "goods".
We will have more details in the March 2017 Budget.
In this example, if the Corporation Tax rate is 20%, the Corporation Tax on the FRS gain (only) is £240.
Therefore the overall annual gain of using the Flat Rate Scheme, after tax, is £960.
You cannot claim any VAT back on purchases/expenses, apart from on some capital purchases.
These links will take you to more information on the HMRC website: VAT Invoice When to register Introduction to VAT HMRC Flat Rate Scheme Guide HMRC Notice 733.
The VAT Flat Rate Scheme is simple to run and can be financially advantageous.
Most VAT Registered "Small Businesses" can choose to be in the VAT Flat Rate Scheme.
Joe Bloggs, who is not registered for VAT as his turnover is just below the VAT threshold.
In the last five years, he has incurred significant setup costs.