The alteration of the VAT flat rate scheme (FRS) categories to include a ‘limited cost trader’ has been widely criticised by advisers. Those FRS registered businesses will be required to use the FRS percentage of 16.5%, which will affect a large number of honest traders.
The aim of the new rate is to check how much a business is actually spending on goods each quarter and identify whether it can submit the return based on its normal trade sector category.
Businesses must spend more than 2% of its gross sales or £250 per quarter otherwise a new 16.5% rate of the gross income will apply.
Businesses must spend more than 2% of its gross sales or £250 per quarter otherwise a new 16.5% rate of the gross income will apply.
Contact us if your unsure how to proceed. We can assess whether or not you need to opt out of FRS in favour of the traditional VAT calculations or deregister altogether.
Failure to apply the new rules could result in penalties and further enquires by HMRC.
Southgate Business Centre,
32 Gillygate,
Pontefract.
WF8 1PQ
Telephone: 01977 791757
FAX: 01977 795366
E-mail: info@stephensaccountants.co.uk
32 Gillygate,
Pontefract.
WF8 1PQ
Telephone: 01977 791757
FAX: 01977 795366
E-mail: info@stephensaccountants.co.uk
