Flat Rate Vat For Electrical Contractors

Menu pricing is made easy with the new flat rate.

Flat rate vat for electrical contractors.

You might be interested in an optional flat rate scheme frs for eligible small businesses. Subject to the 2 3 rule. You calculate the tax you pay by multiplying your vat flat rate by your vat inclusive turnover. Value added tax consolidation act 2010 vatca 2010 ref.

Prior to april 2017 contractors could benefit from rates as low as 11. Find out what vat flat percentage your business can use. This works out as 14 5 of 36 000 which is 5 220. Excludes wiring work beyond powerpoints fuseboards and lampholders such as wiring up electric cookers which is liable at the standard rate.

Example you bill a customer for 1 000 adding vat at 20 to make 1 200 in total. Talk to an accountant or tax adviser if you want advice on whether the flat rate scheme. However due to what hmrc regarded as widespread abuse of the flat rate scheme a new category. Under this scheme you continue to issue tax invoices to vat registered customers but the vat payable every quarter is calculated as a percentage of your vat inclusive turnover.

Alternative flat rate scheme. Registering for the flat rate vat scheme means you are not able to reclaim vat on goods and services and instead pay vat at a flat rate percentage of your gross invoice total. It contractor guide to flat rate vat it contractor guide to flat rate vat amid some confusion surrounding the the vat rise and its potential impact on the flat rate scheme cuk asked john crawford founder and managing director of the vat consultancy to navigate through the benefits potential savings and possible pitfalls. To join the scheme your vat turnover must be 150 000 or less excluding vat and you must apply to hmrc.