Closed krisleech closed 6 years ago
Hey @krisleech, I have not heard about this before and my accountant has not mentioned this either - thank you. Have you recently gone through setting up a company and were recommended not to use the flat VAT scheme?
I've had a limited company over 10 years. De-registered for VAT recently. It would be worth asking your accountant, but I was under he impression you can't go on the flat VAT scheme anymore unless you fall in to a certain category of business. And you have to move off it if you are already on it if you don't met the criteria.
Interesting, I was just registered and my accountant got me into flat VAT.
I might be mistaken, it has something to do with being classed as a "limited cost business". Maybe only the rate has changed.
This might be useful for finding out: https://www.tax.service.gov.uk/check-your-vat-flat-rate/vat-return-period
For me it says "Use the 16.5% VAT flat rate".
I believe this has changed and IT companies can no longer go on the VAT scheme, because it is being used to make money.
http://www.bbc.co.uk/news/business-38084493