If the turnover of a business is £150,000 or less, you may be entitled to calculate VAT using the Flat Rate Scheme. This means that instead of calculating total VAT on sales, deducting total VAT on purchases and expenses, and paying or receiving the difference to or from HMRC, you can pay VAT calculated as a percentage of your gross sales figure. The actual percentage is fixed by HMRC depending on the type of business.
For many types of business, it can be beneficial to join the Flat Rate Scheme.
If you require advice or would like to discuss whether the Flat Rate Scheme may benefit your business, please contact us.