Flat Rate Scheme
If you use standard VAT accounting, you have to record the VAT on every sale and purchase you make. You could simplify your VAT accounting by using the Flat Rate Scheme if both of the following are true:
- · Your estimated VAT taxable turnover – excluding VAT – in the next year will be no more than £150,000
- · Your estimated total business income – including VAT - in the next year will be no more than £191,500
If you use a Flat Rate Scheme, you don’t have to keep a record of the VAT that you charge on every sale or pay on every purchase. You calculate your VAT payments as a percentage of your total VAT–inclusive turnover.
Once on the scheme you may continue to use it to account for VAT until your total business income exceeds £230,000
Account Tax Ltd