Flat Rate VAT Scheme

The amount of VAT a business pays or claims back from HM Revenue and Customs (HMRC) is usually the difference between the VAT charged by the business to customers and the VAT the business pays on their own purchases.

With the Flat Rate Scheme:

• you pay a fixed rate of VAT to HMRC
  
• you keep the difference between what you charge your customers and pay to HMRC
  
• you can't reclaim the VAT on your purchases - except for certain capital assets over £2,000
  

For more information, visit the gov.uk website here: https://www.gov.uk/vat-flat-rate-scheme/overview

WHEN DOES A SMALL BUSINESS NEED AN ACCOUNTANT?

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