Can you rely on the VA mans advice?

The VATman is currently carrying out a big publicity campaign to pursuede businesses that FRS is a good thing.
You save time in filing your VAT return using the FRS because you only have to calculate the VAT to pay as a final percentage of your gross sales. You ignore the VAT you pay on purchases. However you can end up paying out more VAT under the FRS, than you would outside the scheme if the flat rate set for your trade doesn’t suit your particular business. Once that initial period with the 1% discount is up you may longer be an FRS winner. You will save time but its unlikely that you will save VAT too if you chose to use FRS be careful. There have been a number of cases recorded of traders wrongly applying the flat rate to net sales. So remember to apply the rate to your gross sales. Always have a look at the flat rate set for your trade (from 2% to 13.5%) in VAT leaflet no.733 or online at http:/212.100.226.149/hmc/index.jsp and work out what VAT would be due under FRS based on your last few years of trading. Campare this to the actual VAT paid for those years. If you would pay more VAT under FRS it’s a non-starter. Always keep an eye on the VATmans announcements (updates to leaflet no.733) as he can change the flat rate that must be used for a trade at any time. You must use the new rate from the day it is announced, not the day you hear about it. So check this each time you come to complete a VAT return.