UK Fixed Rate VAT and EU Clients
Discussion
Just had a bit of a shock - for the past quarter I've been solely invoicing an Irish company sans VAT with the expectation that as a result I wouldn't have any VAT to pay. Mr Number Crucher's today advised that since I'm on the flat rate scheme the thieving gits at HMRC still want their 13%.
If this is true then I'm p
d off with (i) them, (ii) Mr Number Cruncher for only finding out now rather than when I asked before and (iii) me for being too trusting.
I gather I can now decide to switch from flat rate to variable but that the VAT for the last quarter is still owed. Any idea if I can appeal that or reclaim it at a later date, or even write it off as a loss???
Probably nothing to do with him, but if I ever meet that Brown bloke I'll poke him in his good eye. Bloody government.
If this is true then I'm p
d off with (i) them, (ii) Mr Number Cruncher for only finding out now rather than when I asked before and (iii) me for being too trusting.I gather I can now decide to switch from flat rate to variable but that the VAT for the last quarter is still owed. Any idea if I can appeal that or reclaim it at a later date, or even write it off as a loss???
Probably nothing to do with him, but if I ever meet that Brown bloke I'll poke him in his good eye. Bloody government.
Timmy2TARs said:
Just had a bit of a shock - for the past quarter I've been solely invoicing an Irish company sans VAT with the expectation that as a result I wouldn't have any VAT to pay. Mr Number Crucher's today advised that since I'm on the flat rate scheme the thieving gits at HMRC still want their 13%.
If this is true then I'm pd off with (i) them, (ii) Mr Number Cruncher for only finding out now rather than when I asked before and (iii) me for being too trusting.
I gather I can now decide to switch from flat rate to variable but that the VAT for the last quarter is still owed. Any idea if I can appeal that or reclaim it at a later date, or even write it off as a loss???
Probably nothing to do with him, but if I ever meet that Brown bloke I'll poke him in his good eye. Bloody government.
Aahhh - the joys of the "simplified" Flat Rate Scheme.If this is true then I'm p
d off with (i) them, (ii) Mr Number Cruncher for only finding out now rather than when I asked before and (iii) me for being too trusting.I gather I can now decide to switch from flat rate to variable but that the VAT for the last quarter is still owed. Any idea if I can appeal that or reclaim it at a later date, or even write it off as a loss???
Probably nothing to do with him, but if I ever meet that Brown bloke I'll poke him in his good eye. Bloody government.
My thoughts are that the words "Flat Rate Scheme" and "Bargepole" are always close together in my mind.
You can't really have your cake and eat it.
Flat Rate simplifies the paperwork you need to keep regarding VAT and, in most cases, also reduces the amount of VAT you pay over too.
You can't just "opt out" and "opt in" as when it suits you.
Any business which deals with what the VAT man calls "Mixed Supplies" (i.e. the goods and services they sell attract different rates of VAT) should be very wary about joining the Flat Rate Scheme. The FRS scheme is too crude in those circumstances.
Flat Rate simplifies the paperwork you need to keep regarding VAT and, in most cases, also reduces the amount of VAT you pay over too.
You can't just "opt out" and "opt in" as when it suits you.
Any business which deals with what the VAT man calls "Mixed Supplies" (i.e. the goods and services they sell attract different rates of VAT) should be very wary about joining the Flat Rate Scheme. The FRS scheme is too crude in those circumstances.
OK - thanks for clarifying Eric. I wasn't particularly interested in opting in and out willy nilly. It's just annoying that I was advised there would be nothing to pay and this was one of the reasons I had agreed on the rate I did. I'll file under 'life's experiences' and not make the same mistake in the future! Cheers.
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