4 ms·

Speaking of VAT, it's also fubar as far as I'm concerned. My small company is using the Simplified VAT plan, which implies I don't claim VAT on my expenses and

Speaking of VAT, it's also fubar as far as I'm concerned. My small company is using the Simplified VAT plan, which implies I don't claim VAT on my expenses and costs, but only pay back 13.5% or so to the .gov of the 20% I charge on my invoices. So far, sounds like a good deal right? Until you try to invoice anything outside of the EU! In that case, you /can't/ add 20% to the invoice (as it doesn't apply) But you still need to pay 13.5% of that to HMRC! I'm not joking -- it's a nightmare -- it means that you can't do business oversea at all, or have to leave the scheme which implies extra overhead+costs of a full fat VAT return. When you see such a /simple/ user case being overlooked (in this case, against the tax payer), can you imagine what other holes there must be in the system?

kspaans 11y ago
Can't do business overseas, or would have to give your profits (and possibly more!) to HMRC after doing so?
- buserror 11y ago
  That's exactly the case... I /almost/ been had last year, and I was only saved because the canadian company I worked for still had a remote small (nearly unrelated) office in the UK, so I had to re-invoice everything to them.
  - kspaans 11y ago
    Sorry if this is naive, but what stops you from adding a 13.5% service charge to the invoice, or just bumping your rates to make up the difference? (Apart from pissing your clients off.)
    - buserror 11y ago
      Well, I don't like to reneg on a deal, and I'm already expensive. the 'service charge' is not something I'd like to see someone do to me :-) No the only technical solution is either to do the full fat VAT, or, play the megacorp and keep the money outside of the country. In a way, it's not difficult to see why bigger companies would do that when you get into a knot like that. I'm just too honest :-)
to3m 11y ago
VAT Notice 741A (https://www.gov.uk/government/publications/vat-notice-741a-place-of-supply-of-services/vat-notice-741a-place-of-supply-of-services https://www.gov.uk/government/publications/vat-notice-741a-p...) suggests such transactions, assuming they are B2B, are outside the scope of VAT - since the place of supply is outside the EC. Items outside the scope of VAT do not count towards your flat rate turnover (https://www.gov.uk/government/publications/vat-notice-733-flat-rate-scheme-for-small-businesses/vat-notice-733-flat-rate-scheme-for-small-businesses#determining-your-flat-rate-turnover https://www.gov.uk/government/publications/vat-notice-733-fl...). At least, that would be my excuse ;) Perhaps I need to add that this is not professional advice?
- laurencerowe 11y ago
  This was the advice my account gave me when we started billing work outside of the EU - that work is simply not counted when calculating your flat rate amount.

kspaans 11y ago

Can't do business overseas, or would have to give your profits (and possibly more!) to HMRC after doing so?

buserror 11y ago
That's exactly the case... I /almost/ been had last year, and I was only saved because the canadian company I worked for still had a remote small (nearly unrelated) office in the UK, so I had to re-invoice everything to them.
- kspaans 11y ago
  Sorry if this is naive, but what stops you from adding a 13.5% service charge to the invoice, or just bumping your rates to make up the difference? (Apart from pissing your clients off.)
  - buserror 11y ago
    Well, I don't like to reneg on a deal, and I'm already expensive. the 'service charge' is not something I'd like to see someone do to me :-) No the only technical solution is either to do the full fat VAT, or, play the megacorp and keep the money outside of the country. In a way, it's not difficult to see why bigger companies would do that when you get into a knot like that. I'm just too honest :-)

to3m 11y ago

VAT Notice 741A (https://www.gov.uk/government/publications/vat-notice-741a-place-of-supply-of-services/vat-notice-741a-place-of-supply-of-services https://www.gov.uk/government/publications/vat-notice-741a-p...) suggests such transactions, assuming they are B2B, are outside the scope of VAT - since the place of supply is outside the EC. Items outside the scope of VAT do not count towards your flat rate turnover (https://www.gov.uk/government/publications/vat-notice-733-flat-rate-scheme-for-small-businesses/vat-notice-733-flat-rate-scheme-for-small-businesses#determining-your-flat-rate-turnover https://www.gov.uk/government/publications/vat-notice-733-fl...). At least, that would be my excuse ;) Perhaps I need to add that this is not professional advice?

laurencerowe 11y ago
This was the advice my account gave me when we started billing work outside of the EU - that work is simply not counted when calculating your flat rate amount.