Topic: NEW VAT FRS rate.
I was wondering if anyone is doing anything to stay within there original rate on the FRS?
Background: My turnover (VAT inclusive) is £150,000 and my original rate was 12%, running a labour only company means that I made nearly £7K on VAT per annum.
So My question is, is anyone is in a similar situation and what are the best ways around this? By trying to qualify for the 2% spend on applicable purchases I could keep my original rate.
I could just spend £3K on office materials (cartidges, paper which is way more than I need obviously) but even spebding £3K on "supplies" I will still be almost £4K better off even if I don't use the supplies.
I also have read a few articles on "expanding my business" and its definatley worth it. IE Trying my hand at dealing in ART or watches and trying to make a profit that way. Even if you lose the money you invested and had to sell the items at a lose, I believe you would be within the new regulations.
Any thoughts would be much appriciated.