- Home
- Services
- Who do we help
- Guides
- Google Adsense earnings
- How to Create A Limited Company
- Multiple Dwellings Relief (MDR)
- Step-by-Step Guide for HMRC login
- How to Revive a Failing Business
- Five Key Areas of Tax Planning
- Qualified Vs Unqualified Accountant
- Tax Investigation Guide
- How to Write a Business Plan
- What is Probate
- Airbnb Landlords in London
- How To Start a New Business
- Limited Company vs Sole Trader
- How to file dormant company accounts?
- Income Tax
- Blog
- Contact us
P: 0208 558 6999
E: info@harkia.co.uk
What is VAT Flat Rate Scheme FRS?
Variable VAT Rate
Suitable for some
For Turnover of less than £230,000
4.8 Star Reviews
FRS
How does VAT flat rate VAT works?
The Flat Rate Scheme is designed to simplify VAT accounting for small businesses. Instead of reclaiming VAT on individual purchases, you pay a fixed percentage (based on your industry) of your gross turnover to HMRC.
Although you cannot reclaim VAT on purchases, the scheme allows you to retain the difference between what you charge your customers and what you pay to HMRC.
Eligibility
Who can use Flat Rate Scheme?
Business with less input VAT can ideally benefit from this.
To join,
- The turnover must be less than £150,000
- Must Leave the scheme if turnover exceeds £230,000.
- Must carefully calculate VAT payable
Pros and Cons of using VAT Flat Rate Scheme
Pros:
- Fixed percentage of VAT is payable
- Depending on business industry, lower VAT rates might be available. find here
- Simpler record keeping
- VAT could be claim on some assets valued £2,000 or more
Cons:
- Can’t claim VAT on purchases
- VAT thresholds can limit the business to use it.
4.8 Rating
5.0 Rating
4.9 Rating
Free Harkia Online Portal
Why us.
We are Experienced Accountants providing accounting, tax, payroll, VAT services for over a 15 Years.
We have worked with many software & cloud platforms are we are best placed to advice and integrate system that works for you and you can afford.
Chartered Accountants
Licensed by world’s top accountancy bodies. ICAEW & ACCA firm.
Expert Staff
For Accounts production – VAT – Tax Returns – Tax Advisory
Advisory
Tax and Business advisory to save Tax and future planning.
Deadline Management
Our effective system ensures that none of your deadlines are missed thus avoiding penalties and stress.
Save
Save £1,000’s in cost
Get one of our accounting package!
7000+
Clients 27+
Service Lines 98%
Positive Feedback 2012
Since 2012 Our Accreditations & Certifications
Contact us
This website uses cookies to improve your web experience.
You must be logged in to post a comment.