Why join a Flat Rate VAT Scheme?
You get to keep the difference between the VAT you charge your customers and pay over to HMRC. For example, a hotel or accomodation company, who receive 20% VAT from their customers would only have to pay 10.5% over to HMRC.
Am I eligible?
In order to be eligible you need to be a VAT registered business and expect your VAT taxable turnover to be less than £150,000 in the next 12 months.
You will not be eligible if you have left the scheme or have committed a VAT offence in the last 12 months.
For more information on eligibility please see here.
How do I join?
To join simply apply online when you register for VAT. Alternatively you can apply by post by filling in a VAT600 FRS.
If you becomeno longer eligible or simply want to leave, you can do so by writing to HMRC.
How do I know what my Flat Rate would be?
To find out the Flat Rate for your business please click here.