![]() We've included a full list of the current VAT flat rate below. The amount of VAT payable under the VAT flat rate scheme depends on the industry you operate in. To be eligible for VAT schemes such as this, businesses need to have an annual turnover of £150,000 or less (excluding VAT). The VAT flat rate scheme is rolled out for small businesses that don't have a large turnover, thereby saving them from the hassle of tracking VAT on purchases. ![]() Rather than pay out the difference between the VAT you've charged to your clients and the VAT on your purchases, you'll pay HMRC a fixed rate of VAT. With the VAT flat rate scheme, the process is simplified. This calls for rigorous record keeping, as you need to keep track of all transactions and the rate of VAT charged. You'll pay the difference between the VAT you charge to your clients, and the VAT you pay on your purchases. Under the standard rate VAT scheme, you need to sum up the VAT you've charged to your clients, and deduct the VAT you've paid on goods and services purchased. Among these schemes, the standard rate VAT scheme and VAT flat rate scheme are commonly used by small businesses. ![]() There are various VAT schemes that business owners can register for. ![]()
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