VAT under the Flat Rate Scheme

How does VAT FRS work?

You would charge VAT on top of your invoice at 20%. You are not more expensive to companies that are VAT registered as they directly get the VAT back from the government, so they are never out of pocket. You personally only have to pay over a percentage of your income based on your trade – the average rate for your trade is set by the government. Since you don’t spend too much on vatable items such as car repairs, hiring equipment and agents it is beneficial for you to be VAT FRS registered.

If you earn £15k or over a year you will make savings by becoming VAT Registered under the FRS Scheme.

You can also reclaim the VAT you have been charged on a single purchase of capital expenditure (i.e a computer) goods where the amount of the purchase, including VAT, is £2,000 or more.

However, if you do have a rental property it may not be beneficial for you to be VAT Registered.

What we would do.

  • We will register you for VAT from the date you confirm
  • Every 3 months, we will send you an email to confirm the amount of VAT which is due and how much you have saved by being registered.
  • We will lodge VAT Returns for you on a quarterly basis.

How much will this save me?

  • Depending on how much you earn and what you spend this could save you money.

Why don’t you contact us or give us a call so we can discuss it with you?