Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Ian101 on July 24, 2016, 11:17:37 am
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had a quick look on gov't website and nothing in particular on their list for window cleaners ?
also am I right in thinking you can claim vat back on big items over £2000 e.g a van ?
early stages of going vat registered and may just end up registering on normal as can claim back all vat on everything then.
please share your experience's / knowledge :)
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Flat rate scheme definitely worth it as charge customers 20% pay tax man 12%. Only items above 2k can be claimed back.
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Be careful what you state on here.
You can't claim VAT back on every item over £2000.
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What you can claim back: https://www.gov.uk/government/publications/vat-notice-733-flat-rate-scheme-for-small-businesses/vat-notice-733-flat-rate-scheme-for-small-businesses#reclaim-of-vat-on-capital-expenditure-goods
Look down that document and you'll see that when you dispose of the item you have to account for VAT at the 20% rate, not flat.
Vin
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thanks fellas ! :)
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12% is payable on the gross turnover, not net turnover. + 12% , might not seem too different but work it out and it is 2 or 3 % different , so you are not keeping back 8% (difference between 12% and 20%) to cover vat on your purchases but more like 5 %.
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sorry just read that back and i dont think i explained it very well.
in vat proper you pay 20% of your net turnover,
with flat rate you dont pay 12% of your net turnover , you pay 12% on the gross turnover.
meaning that you pay 12% of your net turnover + 12% of the 20% VAT that you collect.
not as good as it seems!
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Speak to an accountant. Any accountant worth his salt will tell you in 2.5 seconds exactly how much the flat rate will save you.