VAT Flat rate claim
Posted: Wed Jul 11, 2018 11:57 pm
Hi All,
I got a questions and hope someone experienced can help to answer. I have a cleaning company and on a flat rate scheme 11% (just registered by this accountant). The Accountants which was introduce by my friend (Head of VAT Tax) says that they will make an arrangement to invoice my company and they said the VAT element 20% will be paid by my company to them (Accountant) and the net amount of the invoice will be paid by my company direct to my business bank account.
When comes to VAT quarter the accountants will work out the VAT flat rate of 11% and send me this amount to my bank account so that I can pay to HMRC. I clearly don't understand . Should the VAT and Net payment normally paid into my business account and when they calculate the VAT 11% they should let me know the 11% amount figure and I pay to HMRC from my business account?
Is this means that I am loosing something. Say one day if I leave them and move to another accountants, I will lose the 20% VAT that they been receiving and holding all the time on my behalf? And also when comes to company tax i have to pay out of my pocket?
I really don't understand would be grateful if someone can shed some light before I choose to go ahead with this accountants.
Thanks
I got a questions and hope someone experienced can help to answer. I have a cleaning company and on a flat rate scheme 11% (just registered by this accountant). The Accountants which was introduce by my friend (Head of VAT Tax) says that they will make an arrangement to invoice my company and they said the VAT element 20% will be paid by my company to them (Accountant) and the net amount of the invoice will be paid by my company direct to my business bank account.
When comes to VAT quarter the accountants will work out the VAT flat rate of 11% and send me this amount to my bank account so that I can pay to HMRC. I clearly don't understand . Should the VAT and Net payment normally paid into my business account and when they calculate the VAT 11% they should let me know the 11% amount figure and I pay to HMRC from my business account?
Is this means that I am loosing something. Say one day if I leave them and move to another accountants, I will lose the 20% VAT that they been receiving and holding all the time on my behalf? And also when comes to company tax i have to pay out of my pocket?
I really don't understand would be grateful if someone can shed some light before I choose to go ahead with this accountants.
Thanks