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%
Detailed list of flat rate percentages.
Also don’t forget that you will receive a 1% discount in the first year!
