The flat rate VAT scheme is a little known but often very beneficial scheme that simplifies the VAT process and can lead to significant income advantages for certain types of businesses. Under the scheme you charge VAT at 20% on your invoices but pay over VAT to HMRC at a lower rate, between 4% and 14.5% of gross sales. The catch being you cannot reclaim VAT on purchases.
Flat rate VAT is very popular with freelancers, contractors, consultants and people in service industries. Anyone in a business with relatively low costs compared to sales may benefit significantly from the scheme.
At Tax Concept we will fully review your position to ensure you are fully compliant with prevailing VAT legislation and registered on the most beneficial VAT scheme for your business. We will then take care of all the administrative requirements including online VAT registration, VAT return completion and VAT investigations.
Our fully inclusive VAT service includes:
• VAT registration
• Selecting the most beneficial VAT scheme for your business
• Preparation of bookkeeping and VAT returns
• Dealing with HMRC in disputes
• Helping you minimise your VAT liability through pro-active planning