VAT Flat Rate Scheme
If your VAT taxable turnover is below £150,000, you can switch to the Flat Rate Scheme for VAT.
This will greatly simplify your VAT accounting by calculating your VAT payments as a percentage of your total VAT – inclusive turnover.
We will do the calculations for you. In many cases you could end up paying considerably less in VAT each quarter on your VAT return.
The savings can be as much as £3,000 per year in some cases!
Once you are in the scheme you can stay in it until your total business income is more than £230,000.
Other VAT schemes available include
- Annual accounting
- Cash accounting
If you are newly registered for VAT you will receive an additional 1st year discount of 1%.
Advantages of the Flat Rate Scheme :
- Easy to calculate
- Simplifies your book-keeping
- Save you time currently spent on analysing out the VAT on each sales and purchase until standard VAT accounting
- Reduces likelihood of making errors