Vat - Flat Rate Scheme

[Hobo]

In light of 2.5% VAT cut, have %'s on flat rate scheme also reduced 2.5%.

I have a consultancy business which is on this scheme, and if the rates haven't reduced then its not worth being on, so it begs the next question whether a company can opt out of this scheme at any time.

[Zen.]

They have been reduced.

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

Last page.

Edited by Zen. on Monday 24th November 19:07

[JustinP1]

But not by 2.5%

My sector has been reduced by only 1%.

So, the help for small businesses who are on the flat rate scheme is a 1.5% loss of income. Nice Christmas present.

For small businesses in troubled times who may only end up with a net margin of 5% this stealth tax has just taken almost a third of their profits.

[Hobo]

Same here, 1% reduction. Far from the end of the world, but certainly have shafted those on this scheme IMO.

[JustinP1]

Hobo said:

Same here, 1% reduction. Far from the end of the world, but certainly have shafted those on this scheme IMO.

Quite.

It deliberately and directly specifically leaves small businesses out of pocket. With all the rhetoric about helping small businesses it is astonishing. What's the betting that when the temporary reduction ends, the 2.5% gets put back ON to the flat rate scheme...?

It'll be OK though because UK PLC will be able to forward me credit now I am out of pocket....

[7even]

Zen. said:

They have been reduced.

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

Last page.

Edited by Zen. on Monday 24th November 19:07

link broken , looking manually but its taking forever

[7even]

woops ignore that, workey fine