November 5, 2012 | By Nimbus |
If you run a VAT registered business, have you considered going on the flat rate? Providing your turnover is less than £150,000 HMRC will let you pay a fixed percentage of your sales (including VAT) each quarter, rather than analysing all the expenses and deducting the VAT you have suffered on your purchases from the VAT collected on your sales.
The VATman has a list of rates applicable to various industries, which can be found here: http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm#5 We suggest you calculate the payment that would have been due in your last quarter, if it is lower then it maybe time to change to the flat rate.
If you would like to talk to one of our chartered accountants about this, or any other accounting matter, please give us a call on 01273 782 742.