{"id":4885,"date":"2022-10-11T14:37:54","date_gmt":"2022-10-11T14:37:54","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=4885"},"modified":"2022-10-11T14:37:56","modified_gmt":"2022-10-11T14:37:56","slug":"flat-rate-scheme-what-do-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/flat-rate-scheme-what-do-you-need-to-know\/","title":{"rendered":"Flat Rate Scheme: What do you need to know?"},"content":{"rendered":"<p>When running a business, ensuring you get VAT right is vital. So, how can you make things easier?<\/p>\n<p><!--more--><\/p>\n<p>Designed to streamline record-keeping, the VAT Flat Rate Scheme allows you to pay or claim back a simplified fixed rate of VAT to HMRC.<\/p>\n<p>This typically allows you to keep the difference between the\u00a0VAT\u00a0you charge to customers and the VAT you pay on your own purchases.<\/p>\n<p><strong>What are the benefits of the scheme?<\/strong><\/p>\n<p>Maintaining detailed records of sales and purchases can be tedious and time-consuming for any business, and the scheme aims to simplify this.<\/p>\n<p>Additionally, it offers fixed rate percentages that are lower than the standard rate, supporting cash flow management.<\/p>\n<p><strong>Are you eligible?<\/strong><\/p>\n<p>If you wish to use the scheme, you must meet the criteria. This includes:<\/p>\n<ul>\n<li>Being registered for VAT<\/li>\n<li>Expecting an annual turnover (excluding VAT) of \u00a3150,000 or less<\/li>\n<li>Having no \u2018association\u2019 with another business.<\/li>\n<\/ul>\n<p>However, there are some instances where your company will not benefit from the scheme.<\/p>\n<p>For example, if your customers are VAT registered, you must determine the VAT and issue VAT invoices in the usual way.<\/p>\n<p>Other reasons the scheme will not be right for you include:<\/p>\n<ul>\n<li>Your business buys and sells goods from outside the UK, which may make the scheme more complicated<\/li>\n<li>You normally claim input tax.<\/li>\n<\/ul>\n<p><strong>What happens next?<\/strong><\/p>\n<p>If your application is successful, HMRC will confirm this in writing.<\/p>\n<p>The letter will state when you can begin to use the scheme, which will typically be from the start of the VAT period once your application is received.<\/p>\n<p>You may request an earlier or later start date. When doing so, HMRC will take multiple factors into account, including when you apply and your compliance record.<\/p>\n<p><strong>It is advisable to speak to an accountant before joining the scheme to be sure it is right for your business. Please contact our team today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When running a business, ensuring you get VAT right is vital. So, how can you make things easier?<\/p>\n","protected":false},"author":2,"featured_media":4887,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,30,7,52],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4885"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=4885"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4885\/revisions"}],"predecessor-version":[{"id":4886,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4885\/revisions\/4886"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/4887"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=4885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=4885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=4885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}