9th August 2010, 09:23 PM
Unitof1 Wrote:Even in the cases where the client is vat registered quite often they are on a flat rate of vat based on turnover.
Is there a flat rate that you can negotiate?
Flat rates have different percentages depending on your classification of business - ring up an ask the VAT office if you are unsure as it can be quite hard to find on the web site. All of the people I have dealt with are very helpful and WANT you to be comfortable with dealing with your own VAT. Accountants like to make it sound really complicated so you hand it over to them and they can charge ou extra...and if you get it wrong one quarter, you can put it right the next (and have up to 3 years to claim anything you have missed.)
If I have read the second half of your post correctly, unitof1, whatever scheme your client is on does not affect how you charge. Flat Rate makes life very easy - you charge 17.5% (20%) on invoices and apply your flat rate to the amount you owe HM Customs and Revenue and you keep the difference to compensate you for any VAT you may have had to pay yourself. My Flat Rate is 13%, so 4.5% stays in my bank account. It is not hard.
And good book keeping should be done everyweek, so quarterly returns should be a doddle!:face-angel:
(No, I don't do my accounts every week either and rely on my Bank's Account texts to keep me up to date...):0
Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and well preserved body, but rather to skid in sideways, Merlot in one hand, Cigar in the other; body thoroughly used up, totally worn out, and screaming "WOO HOO, what a ride!