This page has been moved to http://andrewfraserdba.com/?p=52
Like this:
Like Loading...
Related
This entry was posted on Thursday 27 November 2008 at 12:06 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
Thursday 27 November 2008 at 9:43 am
That’s an extra 1% of my gross income gone for the next year or two … and what’s the chance of the rate improving later?
Don’t forget to calculate your flat rate for November and any preceding months in your VAT quarter at 13% and for December and subsequent at 11.5%. If you use 11.5% for the whole period you’ll be under-reporting.
What fun.
Thursday 27 November 2008 at 12:41 pm
This is surely bad maths – since the 11.5% is computed on a lower gross value. Seems to me one is now actually 0.05 % better off (£5 per £10K net sales)
Thursday 27 November 2008 at 4:39 pm
Rufus if yout chargint 1000 Net then that 175 vat, you then pay 130 to HMRC,
under the new scheme 1000 Net, then 150 vat you pay 115 to the HMRC,
so your worse off by 1% as before you would have kept 45 piounds per thousand net and now only 35 the only good news is the delay to the revenue splitting changes also when it goes back up the flat rate will probably change to 14% automagically..
Friday 28 November 2008 at 4:12 pm
The point is you DONT pay 130 to HMRC. You shoud be paying 13% or your GROSS I.e. 13% of 1175
Now yo uwill be paying 11.5% of your new gross 1150
I make it 0.45% of a loss. Still worse off but not by 1%
Friday 5 December 2008 at 2:09 pm
So much for the promise we wouldn’t be worse off.
We are £4.50 per £1000 worse off. Your business would need to spend £180 per £1000 turnover on VAT’able goods to recoup those losses on VAT no longer paid on those goods and services.
Under the old scheme
1000+17.5% = 1175 gross
1175-13%=152.17 vat to pay back
175-152.17=22.25 to keep
Under the new scheme
1000+15%=1150 gross
1150-11.5%=132.25 VAT to pay back
150-132.25=17.75 to keep