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Where Taxpayers and Advisers Meet

VAT Flat rate scheme

170872
Posts:72
Joined:Wed Aug 06, 2008 3:41 pm
VAT Flat rate scheme

Postby 170872 » Tue Aug 10, 2021 11:22 am

Hi all, I juts got a questions how some firms of accountants do and hope someone can share your views

One of my friend is working as a courier driver and he has been registered as a flat rate VAT.

What he gets each month is net of VAT and then the accountancy firm provides him a refund each quarter. I was told they receive the VAT on his behalf and make
the flat rate calculation and refund him the balance.

Is there a way of doing like this?

robbob
Posts:3150
Joined:Wed Aug 06, 2008 4:01 pm

Re: VAT Flat rate scheme

Postby robbob » Tue Aug 10, 2021 11:50 am

he has been registered as a flat rate VAT.
What he gets each month is net of VAT and then the accountancy firm provides him a refund each quarter.

Those statements seem nonsensical unfortunately

when on flat rate you pay a % of sales so generally is not possible to have ongoing vat rebates - the exception would be in periods where assets are being purchased that cost of 2k. so i guess perhaps he has been heavily investing in his business that would be the only logical expalnation that i could think of - does sound implausable though


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