Google reviews
November 30, 2014

What is VAT?

Value added tax or VAT as it is known  is a tax payable on goods or services which a VAT registered business provides. The standard VAT rate is currently 20%. You must register for VAT if you have sales of over £82,000.

VAT flat rate scheme

The VAT flat rate scheme is a scheme which HMRC have put in place to allow businesses who do not incur much purchase VAT to take advantage of only paying over a percentage of VAT incurred on sales.

Below is some of the most common Flat Rate Percentages;

Architect, civil and structural engineer or surveyor 14.5%

Computer and IT consultancy or data processing 14.5%

Photography 11%

Financial services 13.5%

Film, radio, television or video production 13%

Management consultancy 14%

You can find a detailed list of flat rate percentages here:

Also don’t forget that you will receive a 1% discount in the first year!



Recent Articles

Make sure your will is up-to-date and you have planned for IHT

Make sure your will is up-to-date and you have planned for IHT

Many of us will die without a will because it is something that we fail to get around to, often because we don’t want to think about our own demise. Around half of UK adults don’t have a will, with a third of those over 55 in this position, according to research from...

UK Export Finance doubles limit to £10m for traders

UK Export Finance doubles limit to £10m for traders

Small businesses looking to access funding to expand their exporting opportunities can now fast-track their applications with UK Export Finance, the Government’s export credit agency, and apply for twice the previous amount. The limit available now is £10m. The move...

Exporters must make declarations on a new system from March 30

Exporters must make declarations on a new system from March 30

Any trader making export declarations needs to move to a new HMRC system from March 30 this year. The CHIEF system is being fully replaced by the Customs Declaration System, and anyone who has been using the old system will now have to move across. There has been a...

Ready to join us?

Whether you’re a contractor, freelancer, or small business, Bright Ideas can help remove the burden of time-consuming and complex finances. We’ll draw on our years of knowledge and experience earned helping sole traders just like you.

When you choose us, you’ll be assigned a dedicated Account Manager who’ll provide one-on-one support that’s customised to your business. Communication is key, so we’ll always answer your questions or requests as soon as we can. In fact, we offer a same-day response guarantee for emails and calls received before 3pm.

Contact us to get started

Give us a call us or send an email today!

Looking to switch accountants?
We make the transition simple.

Does your current accountant give 1-to-1 support? Are they fast and thorough?
Slap-dash services hold businesses back, so try our experts instead.

Move to an accountancy service that goes the extra mile…

Start the conversation

Let’s make your finances Brighter

Call us Monday to Friday 9am - 5pm

0161 669 4221

Request a call back