Here we explain how the VAT Flat Rate Scheme operates. The VAT flat rate scheme is designed to reduce the administrative burden of operating VAT for small businesses. If you are starting or have started a business in Lewisham, Bromley, Kent and London areas we, at Adiva Accountants in Lewisham, can advise you as to whether the flat rate scheme is appropriate to you.
In this VAT scheme a set percentage is applied to the total turnover of the business as a one-off calculation. This is used instead of having to identify and record the VAT on each sale and purchase you make.