Accounting Journal

Accounting Journal

VAT flat rate scheme – Is it for you?

Asif Patel's avatar
Asif Patel
Jan 23, 2025
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The VAT flat rate scheme is a simple VAT scheme for smaller VAT-registered businesses. Rather than pay the difference between the VAT charged to customers and that incurred on business purchases over to HMRC, traders using the flat rate scheme instead pay a fixed percentage of their VAT-inclusive turnover to HMRC. The percentage depends on the sector in…

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