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new Flat Rate VAT percentages from January 2010
I'm trying to work out whether I'll be better or worse off when the VAT rate goes back up on 1 Jan 2010. Does anyone know if the new Flat Rate Scheme percentages have been announced yet?
All I can find out from HMRC is this:
All I can find out from HMRC is this:
On 1 January 2010, the flat rates will broadly return to their November 2008 levels. HM Revenue & Customs will be reviewing the rates to check that they accurately reflect the VAT paid by businesses in each sector. Some adjustments may therefore be necessary. The flat rates will be finalised and published towards the end of 2009
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Inappropriate?Hello David,
I'm FreeAgent's in-house accountant. I've had a look too on HMRC's website and I can't see any more information than you have found.
I'd be glad to hear if anyone else has any more information in the meantime, but when the rates are published, would you find it useful to have a link to them either here in GetSatisfaction or on our blog?
Would anyone else like this too?
Kind regards,
Emily -
Inappropriate?Yeah a link would be useful once the info is published, just curious really.
I have every confidence Ed and the guys will be on top of it and everything will work seamlessly in FAC for my VAT returns :-D
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Inappropriate?it's quite simple - the Flat Rate VAT percentages will revert to what they were before the main rate was reduced from 17.5 to 15%. -
Inappropriate?Hello David,
That could be the case but HM Revenue haven't yet confirmed that, I don't think. The flat rate percentages on their website are still those that apply at the moment for the 15% rate and I can't see anywhere that they've published the new rates for after 1st January 2010.
If you've found a confirmation from HM Revenue then could you let us know where that is, please?
Many thanks,
Kind regards,
Emily -
Inappropriate?You are correct - all they say is that "On 1 January 2010, the flat rates will broadly return to their November 2008 levels. HM Revenue & Customs will be reviewing the rates to check that they accurately reflect the VAT paid by businesses in each sector. Some adjustments may therefore be necessary. The flat rates will be finalised and published towards the end of 2009."
So maybe they will change but we won't know until the end of 2009. -
Inappropriate?Have a look at http://vatreadyreckoner.hmrc.gov.uk/
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Inappropriate?Hi floobynooby,
I've just checked that link out (thanks very much for sending it through) and unfortunately it still shows the percentages as they are now - not how they're going to be after the standard rate goes back to 17.5% on 1st January 2010.
I don't think HMRC have yet said what they'll be after that date, but I'll keep an eye on their website.
Kind regards,
Emily -
Inappropriate?Hi folks,
Good news - HMRC announced the new VAT flat rate percentages today.
You can find them here:
http://www.hmrc.gov.uk/pbr2009/pbrn33...
We will of course be updating FreeAgent for these.
Kind regards,
Emily
I’m relieved
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Inappropriate?And further to my message yesterday, we're glad to say that FreeAgent has now been updated to be ready for the change.
Kind regards,
Emily2 Comments
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This answers the question
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Thanks for this - for my information, does the first year one percent discount still apply? I'm a management consultant, so I'm guessing that I can go from 10% to 11.5% Flat Rate for the remainder of my first financial year. If I'm right, does Free Agent take this into account?
Many thanks,
Adam -
Hello Adam,
Yes it does indeed.
Kind regards,
Emily -
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