.png)
.png)
Changes to the flat rate scheme and the ways to avoid becoming a limited cost trader.
KEY POINTS
- The new flat rate scheme rate of 16.5% comes into force from 1 April.
- Consider starting a new venture in the trading company to avoid being a limited cost trader.
- Broaden range of services to extend customer base.
- Time purchases of items required for the office.
- The proposals are within the letter of the law but are they within the spirit of it?
I have a dilemma. I will soon be telling two clients that their VAT bills will increase dramatically after 1 April 2017 when the ‘limited cost trader’ category in the flat rate scheme (FRS) is introduced.
The rate for the new category is 16.5%. This means there is virtually no credit for input tax and it is at least 2% higher than any category...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
