IT Contractors: Registering for flat rate VAT

[Paul_HDLover]

Can anyone point me in the direction of registering for flat rate VAT. Im going to be operating via my ltd company from March onwards and want the flat rate registration complete by then if possible.

I have a couple of questions...

Where do I register?
How much does it cost to register?
Can you stipulate a start date i.e. for when the company will commence trading?
Is it correct to say that IT Consultants pay VAT at a flat rate of 11.5% (10.5% for year 1) and pocket the difference?

I will be getting an accountant, but probably not for a few weeks yet. I know there can be a lag on getting registered for VAT so just wanted to get a jump on it just now.

Thanks in advance for any help offerred.

[Earthworm Jim]

AFAIK its only if you can bring in over I think its £65k that you can qualify.

[eric pisch]

Originally Posted by jimthelegend

AFAIK its only if you can bring in over I think its £65k that you can qualify.

i was under the impression you could volunteer to register below 65k but over it and it is compulsory

[Earthworm Jim]

Originally Posted by eric pisch

i was under the impression you could volunteer to register below 65k but over it and it is compulsory

Oh OK, that sounds more likely to what I heard

[Ultima]

Originally Posted by eric pisch

i was under the impression you could volunteer to register below 65k but over it and it is compulsory

That's correct and as long as your VAT Taxable income isn't more than I think £150,000 (Business income in total no more than £187,500) then you can register for the flat rate scheme.

To register it's probably easiest to go on the HM Revenue and Customs website CLICKY and register online.

Regards

EDIT: It's £67K but who's counting

[Paul_HDLover]

Anyone of you guys registered for it? How long did it take?

What does AFAIK mean? Is it a TLA?

[Mrcon]

As Far As I Know=AFAIK

[eric pisch]

Originally Posted by Paul_HDLover

Anyone of you guys registered for it? How long did it take?

What does AFAIK mean? Is it a TLA?

I (IT Contractor also) am desperately try to avoid it like the plague, my accountant wants me to do it as it would save him alot of agro and he reckons i would be better off.

VAT officers have more power than the courts, you don't ever want to upset them I really cant be done messing about with monthly returns to the VAT office especially as I am labour only. Psychologically my tenders look 15% more competitive

[Paul_HDLover]

Originally Posted by eric pisch

I (IT Contractor also) am desperately try to avoid it like the plague, my accountant wants me to do it as it would save him alot of agro and he reckons i would be better off.

VAT officers have more power than the courts, you don't ever want to upset them I really cant be done messing about with monthly returns to the VAT office especially as I am labour only. Psychologically my tenders look 15% more competitive

Reckon its 6 and 2 threes though....Working under an umbrella company they ask for invoice + VAT anyway. Better in our pockets than theirs.

Reclaiming VAT is not a hassle to firms employing IT staff in my experience.

[lonny]

VAT registration was very slow a while ago due to a backlog. Not sure if it is ant faster now given state of economy but you can ring vat enquiry line to ask.

Also, you don't have to have the vat number to start invoicing. I've been in this position before where I invoiced for my gross amount and then submitted later invoice for the VAT on earlier invoices - this is common and if you speak to whoever administers payments for your agent they should be able to help you on this.

[Mr_Wistles]

Originally Posted by Paul_HDLover

Anyone of you guys registered for it? How long did it take?

I am setup for this, took about a month to switch over from the standard.

If you are contracting it is stupid not to, money for nothing.

Vat returns are simple, in three months you did X hours X vat rate = write a cheque.