Boring Boring Accounting Question about VAT and which system to buy?????

[MellowMa]

Message withdrawn

so you would keep an extra 9% of all your sales invoices

You have to work out if it is better value for you to take that benefit or to offset/reclaim the vat on costs against the vat on sales

OK so if he supplies materials he is prob not better off on flat rate...

yes, but there is a limit to the turnover for which the flat rate scheme can apply. i.e. if your turnover is over a certain amount then you can't do the flat rate scheme. i suspect this firm is approaching it.

Message withdrawn

I agree - don't forget MM to unearth all equipment invoices (things bought for the business but still in use today) as you can reclaim the VAT paid on them too - your first VAT return should be quite healthy - in your favour I would expect.
Would have to check the rules for how far back you can go as I can't remember but 3-5years I think.

The limit is £150k

Message withdrawn

Message withdrawn

You're about to undergo a steep learning curve then Mellowma - hope you have your crampons and poles at the ready!!

and this is not helping me get my VAT return done for client so I'm buggering off now! Good luck xx

No BK, Wisteria

You can use this scheme if your annual turnover (excluding VAT) is not expected to exceed £1,350,000

I still think though if co has been trading for a while and he buys materials then he will be better off NOT on flat rate on face of it

that's the cash accounting scheme, not flat rate scheme I think CD.

oh yes how right you are

Are you really 21 CD??

yes

and a supermoggle

Message withdrawn

Message withdrawn

oh fgs
what do you think this is???

recommendaccoutningsystemsforsmallbusinesses.com???

I think you should get SAP

PMSL - well I'd try QB for ease but would recommend that you actually speak to your accountants first as they will have to deal with the year end anyway....

The revenue run some VAT courses which you might find useful.

Message withdrawn

Message withdrawn

oh sorry it was a joke

Can't believe this got 51 posts