There was very little in the 2016 Autumn Statement which directly affected small business, but one measure caught our eye; HMRC are changing the VAT Flat Rate Scheme. The VAT Flat Rate Scheme is a simplified scheme for accounting for VAT. If you are VAT registered and on the scheme, you forego the ability to …
The intention of the Flat Rate Scheme is to simplify the process of reporting VAT for businesses. VAT payable becomes simply a factor of VAT inclusive sales for a quarter – removing the need to analyse input VAT on purchases. See here for our recent blog on the Flat Rate Scheme. There is also an …
For years, many small businesses have stated that being registered for VAT is an administrative burden on their business. By being VAT registered, a business is effectively an unpaid tax collector. In order to try and help small businesses, the Flat Rate Scheme (FRS) was introduced by HM Revenue and Customs (HMRC) in 2002. If …