VAT

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November 30, 2014

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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:

http://www.hmrc.gov.uk/manuals/frsmanual/FRS7300.htm

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

Self Assessment →

Resources

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