Under the VAT rate scheme, a flat percentage is used to calculate the VAT payable, ignoring VAT incurred on expenses. This can save some work as well as money. The flat rate % depends on the type of trade.
If you have two or more different types of business, the flat rate % is determined by the business with the largest turnover.
It is available to join as long a turnover excluding VAT is not more than £150,000 p.a., and a business can stay in the scheme until turnover reaches £230,000.
As with most things VAT related, there are lots of wrinkles and “small print”. Not all businesses will benefit, and it does need a regular review to see if it might be beneficial to register or deregister.
Contact us to arrange a review now.