Flat rate VAT scheme: overview
Flat-rate VAT scheme | (0)
The flat-rate VAT scheme (FRVS) makes small business lives easier (there's more information on the HMRC site).
Rather than recording the VAT on every transaction you make (EG goods and services you pay for and offer), you just pay a set percentage of your turnover. This saves you loads of paperwork.
The percentages vary by industry - and if you're particularly efficient (ie you spend less than usual on raw materials), you could end up making a profit on VAT! (And vice versa of course...).
The downside is that you can't reclaim VAT you've paid - but this is already allowed for in ...