Flat rate VAT - advice

(4 Posts)
doadeer Wed 16-Sep-20 11:34:26

Posted in Money Matters too! Just need help!

My family have a sports business which is studio based. We've grown it from scratch to a thriving small business which we are so proud of. We are now at the VAT threshold but being classed as a limited goods company we need to pay 16.5% VAT. We can't pass this cost on to customers without hiking the prices which we don't want to do.

If we can show we spend £1000 or 2% turnover on goods we can pay 8.5% VAT. Every where I look I can see lists of items NOT included in this but nowhere a clear list of what can be included. Feeling very frustrated. I'm not sure the business could comfortably survive if we need to pay 16.5% VAT in addition to our corporate tax.

Any advice?

OP’s posts: |
LouiseTrees Wed 16-Sep-20 17:11:05

Did you check the government website. Basically there is no list of what can be included but there is eligibility criteria of the goods that can be counted and a defined list of what can’t. Will post screenshots then explain them.

LouiseTrees Wed 16-Sep-20 17:15:19

The baby is crying so will post them later but screenshots will have been taken from attached www.gov.uk/government/publications/vat-notice-733-flat-rate-scheme-for-small-businesses/vat-notice-733-flat-rate-scheme-for-small-businesses#para4-6

doadeer Wed 16-Sep-20 17:20:50

Yes I've read all of this site.

I think we need to buy more equipment to be eligible but it's worth it finacially as the saving is huge.

Hope your baby is OK!! 🙏

OP’s posts: |

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