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  #1   IP: 188.29.68.255
Old 06-06-2013, 09:43 PM
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lynchy lynchy is offline
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Default vat flat rate

Just wondering if any one on here on 'flat rate scheme'?any thoughts?
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  #2   IP: 86.184.122.194
Old 06-06-2013, 09:48 PM
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Default Re: vat flat rate

Quote:
Originally Posted by lynchy View Post
Just wondering if any one on here on 'flat rate scheme'?any thoughts?
So your on 10 quid an hour now lynchy all in ?
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  #3   IP: 188.28.23.186
Old 06-06-2013, 09:59 PM
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Default Re: vat flat rate

Who told you?????Lol in my wildest dreams mate! Not quite back to 90's money .....yet!
Looking at buying bit of land with view to building something up on my time off between 'proper' work
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Old 07-06-2013, 04:01 AM
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Default Re: vat flat rate

rob will have an idea on flat rate vat, im sure he has mentioned it before. thinks plant game is 11% if i remember rightly. makes life easier
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  #5   IP: 92.41.59.97
Old 07-06-2013, 08:19 AM
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Traxcavator. Traxcavator. is offline
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Default Re: vat flat rate

Not sure what your trying to achieve, however here's a little bit of info.
You only need register for VAT if your sales are over 79,000.
If you wish to de register, ie if you sales fall, these sales have to drop to 77,000 or less.
Flat rate VAT is only really for the retail business's. it saves entering every invoice or receipt therefore the VAT is calculated on your gross sales.
However if you generate sales over 150,000 per annum you cannot use the flat rate scheme.
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Old 07-06-2013, 01:07 PM
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Default Re: vat flat rate

Quote:
Originally Posted by lynchy View Post
Just wondering if any one on here on 'flat rate scheme'?any thoughts?
There are at least 5 owner ops I am aware of in very similar situations to myself that are on it and it works great imho for our situation.

If you fuel your own machine or regularly purchase materials to complete work you are doing then I very much doubt you would benefit.

You still need to be VAT registered so if you have no need to be VAT registered then Flat Rate VAT is of no consequence.

I know one guy who slipped up when he purchased a mini digger to complement his 3cx. Even if you only operate one at a time ( I haven't met an op yet who can manage both machines at same time ) you are no longer an owner op in eyes of HMRC. He got a big bill.

Another found that the VAT on parts for maintenance is not reclaimable even if it is over the 2500 limit, eg set of running gear on a traxcavator
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  #7   IP: 86.29.177.111
Old 07-06-2013, 08:29 PM
msh paving msh paving is offline
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Default Re: vat flat rate

Who told you VAT on parts is not reclaimable,why cant you be a owner /operator with 2 machines if you dont hire out on self drive whats the issue,
i think so people are missinformed MSH
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Old 08-06-2013, 06:12 AM
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Default Re: vat flat rate

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Originally Posted by msh paving View Post
Who told you VAT on parts is not reclaimable,why cant you be a owner /operator with 2 machines if you dont hire out on self drive whats the issue,
i think so people are missinformed MSH
I'm not a VAT inspector or a tax specialist I am only posting my understanding of the situation and what has happened to two others I know of. I am also relying on them having told me the unbellished truth.

If you know different then please feel free to correct any errors.

My understanding is only capital purchases greater than 2500 inc vat can be reclaimed.
I have never had to purchase a single part of that amount but was told by the o/op of a traxcavator that he could not reclaim the vat on his running gear as it was classed as wear and tear eg parts for maintainance. I'm quite sure he must have checked with some authority, possibly HMRC ! Is it possible that no single item was greater than 2500 ? I confess I have no idea how much a track chain would be for a 943.

As for the guy with the 3cx who bought the mini digger and was using it as operated hire, maybe he had the 3cx out on self drive but omitted to tell me that was the problem.
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Old 14-08-2013, 04:48 PM
GB_Groundworks GB_Groundworks is offline
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Default Re: vat flat rate

Msh are you aware they are talking about the flat rate scheme not just being generally vat registerd
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Old 21-02-2015, 03:17 PM
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Default Re: vat flat rate

Quote:
Originally Posted by msh paving View Post
Who told you VAT on parts is not reclaimable,why cant you be a owner /operator with 2 machines if you dont hire out on self drive whats the issue,
i think so people are missinformed MSH
Quote:
Originally Posted by AtlasRob View Post

If you know different then please feel free to correct any errors.

My understanding is only capital purchases greater than 2500 inc vat can be reclaimed.
NOTE........WE ARE TALKING FLAT RATE VAT

Well, bit of upset this week, read, panic attack

Pity MSH didn't find it worth adding what his understanding of the rules are but hey ho.

Lad I know has got hit with a big backdated tax bill following investigation by HMRC after he bought another machine and reclaimed ( attempted too) the VAT on purchase.

Again, I can only relate what I am told in such circumstances and rely on that party telling me the whole story.
Upshot is investigator decided that he should not have been on Flat Rate and they are having the tax back. Been going a few years, was alongside me in 2003 on M25.
Apparently its been to two tribunals and he's lost both.

My understanding is this mate operated exactly same as several other folk including me so you can understand why I went, GULP!

Lots of searching of HMRC website, phone calls to HMRC and accountants by several lads in similar situation has left me completely dumb founded as to wtf actually happened at the original investigation as everybody is confirming that the way we are operating is exactly the way we should as the Flat Rate scheme is designed with the likes of us in mind.

BUT every cloud and all that.

A few corrections I need to make.

Capital purchases INC VAT of 2000 not the 2500 I believed, you can reclaim the VAT.
A single purchase does not have to be A SINGLE item eg, a computer, printer, desk, phone bought in a single package (transaction) at same time same supplier if 2000+ inc, VAT can be reclaimed. (not my previous understanding at all)

Another important fact, items used up by the company eg, bottles in a bottling plant, welding rods during fabrication cannot have VAT reclaimed,
BUT
Items used up by the company over a number of years can.

My understanding of this is the running gear on a traxcavator / excavator or my tyres are used up over a number of years so the VAT on purchase is reclaimable. Not what another mate was told or my understanding.

Wonder how many fuel & oil filters I'd get for 1675 + vat = 2010
Tounge in cheek as filters and oil only last 250hrs

All information taken from here.

https://www.gov.uk/government/public...all-businesses.

If you want a laugh think of me and read 15.7 (which appears to be the clause the original investigator referred to) enquiries have shown that although we operate as plant hire the clause refers to the likes of a 3t dumper hired out without operator which makes perfect sense.

Quote:
why cant you be a owner /operator with 2 machines if you don't hire out on self drive what's the issue,
There doesn't appear to be one, provided you remain below the threshold limit.
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