| Switch to the flat rate VAT scheme for small businesses |
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| Posted by Administrator (admin) on Feb 19 2008 at 8:29 PM |
| news >> |
Switch to the flat rate VAT scheme for small businesses if your business has few costs and overheads, and your turnover is less than £150,000 a year. The VAT you pay is calculated by multiplying your gross sales by a flat rate determined by the business sector you work in. Purchases are ignored, so there are no complicated VAT set-off calculations. If you start to use this flat rate VAT scheme in your first year of VAT registration, the flat rate you use is reduced by a further 1%, so the savings are even greater
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