VAT Schemes

VAT Schemes There are several VAT accounting schemes for businesses to consider, some of which can help save both time and money. Some schemes have been developed by HM Revenue & Customs for particular trade sectors and others to simply try and help... More

VAT Schemes
There are several VAT accounting schemes for businesses to consider, some of which can help save
both time and money. Some schemes have been developed by HM Revenue & Customs for particular
trade sectors and others to simply try and help business owners operate more efficiently.
VAT Scheme
Standard VAT Accounting – VAT is payable when an invoice is issued.
Cash Accounting – Instead of VAT being payable when an invoice is raised it becomes payable
when payment is received. Similarly VAT cannot be reclaimed until you have paid your suppliers
Annual Accounting – Only one VAT return is completed per year. Businesses using this scheme pay
either 9 monthly or 3 quarterly payments based on the VAT paid in the previous year. Once the return
has been completed a balancing payment or refund is made
Flat Rate Scheme – Businesses pay a “flat rate” percentage of turnover as VAT rather than account
for it on individual transactions. The percentage varies for different business sectors an Less