De-register for VAT

[ashontherun]

Hello Zimba and other moderators,

As you all know that w.e.f. from April 2017, VAT Flat rates have been increased to 16.5% - making it unprofitable and not worth being on the Flat Rate Scheme.

I have a couple of questions:

1) Is it advisable if I apply for VAT de-registration as there is no monetary benefit in the Flat Rate scheme as mine is a Management and Business Consultancy.

2) Would it have an effect on future applications, e.g., ILR etc.

Could you please advise?

Thanks

[zimba]

This has no relevance to immigration rules or your visa. This is a business related matter, so seek business advice from appropriate channels.

[ashontherun]

Noted, Thanks for your advice Zimba!!

Cheers

[Faheemryk]

I'm writing this reply according to my best knowledge. I'm not responsible if it's 100 percent correct, but I'm quite confident that this is how it is.

Secondly, this matter has nothing to do with visa and immigration. This is more related to general business.

There is still a little 2.5% monetary benefit for being on 16.5% flat rate. Off course you should be at 14% previously and that was giving you 6% monetary benefit but you were paying 20% corporation tax on the benefit that you were having on the money you were saving by being on Flat rate, giving you a net benefit of 4.5%.
So as far as monetary benefit is concerned, being on 16.5%, you'll have a net benefit of 2% after taxes. However, i am not sure if you are aware that new flat rate of 16.5% is not applicable in every quarter.
16.5% is only applicable if you were a low cost business in that particular quarter. If you were not a low cost business then, you'll continue to apply 14%.
Have you worked out if you are a low cost business?

[zimba]

I am sure members appreciate such input however this is not an immigration related issue and it is preferable not to be discussed here under Tier 1E visa forum.

[KAKA-MAG]

Hello Zimba and other moderators,

As you all know that w.e.f. from April 2017, VAT Flat rates have been increased to 16.5% - making it unprofitable and not worth being on the Flat Rate Scheme.

I have a couple of questions:

1) Is it advisable if I apply for VAT de-registration as there is no monetary benefit in the Flat Rate scheme as mine is a Management and Business Consultancy.

2) Would it have an effect on future applications, e.g., ILR etc.

Could you please advise?

Thanks

Please de register only if your company turnover below the threshold .