Flat Rate Vat For Electrical Contractors

Value added tax consolidation act 2010 vatca 2010 ref.

Flat rate vat for electrical contractors.

The flat rate scheme frs is an alternative way for a small business to account for vat the purpose of the scheme being that it reduces the administrative burden on small businesses by allowing them to keep simplified and less detailed vat records. 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. However due to what hmrc regarded as widespread abuse of the flat rate scheme a new category. 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. This works out as 14 5 of 36 000 which is 5 220. We re helping electrical hvac flat rate and plumbing contractors like you double and triple their sales.

Find out what vat flat percentage your business can use. To join the scheme your vat turnover must be 150 000 or less excluding vat and you must apply to hmrc. 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. 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.

Menu pricing is made easy with the new flat rate. Prior to april 2017 contractors could benefit from rates as low as 11. You calculate the tax you pay by multiplying your vat flat rate by your vat inclusive turnover. Alternative flat rate scheme.