My name's Simon. I set up a ltd company as a hgv driver a few weeks ago with a help of a recommended accountant. The accountant was very keen on registering VAT FRS at 12%. I understand I get a discount at 1%. However now reading through the posts many bookkeepers mentions it's 10%. The new FRS comes into force next month and my accountant is very keen on it. I need to point out that I am not an owner driver. I only hire myself out to various recruitment agencies.
My many colleague drivers say it's a waste of time and they sign out. If my turnover is £30k, charging vat 20% is £6k, I return £4950 which still leaves me with over £1k. It's actually £4650 as I get 1% discount. I personally think if the way I think is correct that for £1k it is worth staying on FRS. I'm not going to have many purchases and as I know rules on what qualifies have been limited. I think my purchases won't exceed £200 per annum.
My accountant charges me £56 per month. Is this a fair/competitive price I get?
Although I'm not an accountant I post here, don't know if I can. I found so much useful info on the forum.
