IT contractors and PBR

[NoelWatson]

1. With VAT cut to 15%, how will this affect people on flat rate VAT?
2. Employers and Employee NI up by 0.5%
3. 45% tax for earnings over 150k

[grumbledoak]

I didn't really find the flat rate scheme worth it before. At best it would have simplified the form-filling, but they never re-printed the stationary so it wasn't even that.

I presume this will make it even less attractive.

[Eric Mc]

I assume the scale rate tables will need to be adjusted down to reflect the overall reduction in the VAT rate.

For anyone on Cash Accounting, changes of rates cause all sorts of headaches.

[Zen.]

http://www.hmrc.gov.uk/pbr2008/vat-guide-det.pdf

Annex E - page 45

[Eric Mc]

Many thanks for the link - that was very informative.

[Zen.]

Eric Mc said:

Many thanks for the link - that was very informative.

I have to say that the HMRC website does not make it easy to find, it took me several attempts to find the actual information, despite many seperate references to it.

[NoelWatson]

Zen. said:

http://www.hmrc.gov.uk/pbr2008/vat-guide-det.pdf

Annex E - page 45

Thanks. I wonder why they chose 11.5% for an IT consultancy rather than 11%.