When Gordon Brown first announced the introduction of the VAT flat rate scheme five years ago 95% of accountants and tax advisers wrote it off as a bad deal.
So why get excited about it?
However in this article I will give five practical situations of how the flat rate scheme can also prove a winner showing why it is dangerous for tax advisers to ignore its potential benefits for clients.
What is it?
The basic principles of the flat rate scheme follow:
- it is only available to small businesses with VAT exclusive annual taxable turnover of up to £150 000 and VAT exclusive annual total turnover i.e. including exempt and non-taxable income up to £187 500;
- instead of paying VAT based on output tax less input tax a business will apply a given flat rate percentage to its gross...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.