VAT Special Schemes

Two of the most popular and simple to use VAT schemes are still available for businesses to use.

 If you don’t currently use the Cash Accounting scheme and your turnover is not more than £1.35million, this scheme might be worth looking at especially if you are generally owed more from your customers than you owe to your suppliers. You then account for VAT at the point in time where cash is received from customers and when payments are made to suppliers.

 If your business turnover is less than £150,000 the Flat Rate scheme is available to use. It can be particularly useful where businesses incur low amounts of VAT on their purchases. On the other hand businesses with significant zero rated sales should be cautious about the scheme. It basically involves paying a flat rate VAT percentage on your gross sales with a large restriction on the amount of Input VAT that needs to be accounted for.

If you need further explanations of these schemes and how they might help you please give us a call on 01722 411 535.