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Flat rate VAT and income tax

118diesel
Posts: 1
Joined: Tue Apr 06, 2010 11:42 am

Flat rate VAT and income tax

Postby 118diesel » Tue Apr 06, 2010 11:45 am

I am a soul trader, and am thinking of voluntarily registering for VAT and going on the flat rate scheme. My question is, does the cash made from the FLat RAte scheme beco
e eligible for income tax/national insurance ?

pawncob
Posts: 3123
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Flat rate VAT and income tax

Postby pawncob » Tue Apr 06, 2010 9:27 pm

What cash?
Under the flat rate scheme, VAT paid to HMRC is a deduction against profits, since you don't (normally) reclaim any input tax.
With a pinch of salt take what I say, but don't exceed your RDA

RAL
Posts: 1064
Joined: Thu Oct 30, 2008 12:47 pm
Location: London & Surrey
Contact:

Re: Flat rate VAT and income tax

Postby RAL » Tue Apr 06, 2010 11:08 pm

118diesel wrote:I am a soul trader, and am thinking of voluntarily registering for VAT and going on the flat rate scheme. My question is, does the cash made from the FLat RAte scheme beco
e eligible for income tax/national insurance ?


Yes, it will be subject to tax/ni.

Gross receipt/sales less flat rate vat paid to hmrc = Turn over less expenses = profit.
RAL

RAL
Posts: 1064
Joined: Thu Oct 30, 2008 12:47 pm
Location: London & Surrey
Contact:

Re: Flat rate VAT and income tax

Postby RAL » Wed Apr 07, 2010 9:40 am

pawncob wrote:What cash?


118diesel wrote:I am a soul trader, and am thinking of voluntarily registering for VAT and going on the flat rate scheme. My question is, does the cash made from the FLat RAte scheme beco
e eligible for income tax/national insurance ?


Difference between vat charged to the customer and flat rate vat paid to HMRC.
RAL


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