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Flat rate VAT and income tax

Posted: Tue Apr 06, 2010 11:45 am
by 118diesel
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 ?

Re: Flat rate VAT and income tax

Posted: Tue Apr 06, 2010 9:27 pm
by pawncob
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.

Re: Flat rate VAT and income tax

Posted: Tue Apr 06, 2010 11:08 pm
by RAL
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.

Re: Flat rate VAT and income tax

Posted: Wed Apr 07, 2010 9:40 am
by RAL
What cash?
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.