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 …