Flat Rate Vat For Electrical Contractors
You might be interested in an optional flat rate scheme frs for eligible small businesses.
Flat rate vat for electrical contractors. This works out as 14 5 of 36 000 which is 5 220. The vat to pay out to hmrc using the flat rate scheme is 14 5 of total income including vat 14 5 is the hmrc rate for civil engineers other types of contractor will have different rates. Talk to an accountant or tax adviser if you want advice on whether the flat rate scheme. We re helping electrical hvac flat rate and plumbing contractors like you double and triple their sales.
Alternative flat rate scheme. Find out what vat flat percentage your business can use. Example you bill a customer for 1 000 adding vat at 20 to make 1 200 in total. Menu pricing is made easy with the new flat rate.
Value added tax consolidation act 2010 vatca 2010 ref. However due to what hmrc regarded as widespread abuse of the flat rate scheme a new category. 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.
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. Subject to the 2 3 rule. Prior to april 2017 contractors could benefit from rates as low as 11. To join the scheme your vat turnover must be 150 000 or less excluding vat and you must apply to hmrc.