Cash accounting scheme
If your annual turnover does not exceed £1,350,000 you can account for VAT on the basis of the cash you pay and receive, rather than on the basis of invoice dates.
Annual accounting scheme
If the annual taxable supplies do not exceed £1,350,000, the business may apply to join the annual accounting scheme. In this scheme, they will make monthly or quarterly payments of VAT, but will only have to complete one VAT return at the end of the year.
Flat Rate scheme
In this scheme, smaller businesses are allowed to pay VAT as a percentage of their total business income. Therefore, no specific claims to recover input tax need to be made, but for the fixed assets over the amount of £2,000. The scheme’s aim is to simplify the way small businesses account for VAT. But for some businesses, it can also result in a reduction in the amount of VAT that is payable under this scheme.
As it is impractical for most retailers to maintain all the records required, there are special schemes for retailers.