Chichester Tax Office – Guide To The VAT Flat Rate Scheme
Chichester tax office and accountancy firms can help you to decide which VAT scheme is the best for your business. In this post, we are going to look at the VAT Flat Rate Scheme in more detail so that you can get a better understanding about what it entails.
Typically, the amount of VAT you need to pay HMRC is determined by the difference between the VAT you pay on your own purchases and the VAT your charge to your customers. However, the Flat Rate Scheme operates in a different manner. With this scheme, you pay a fixed rate of VAT to HM Revenue and Customers. Also, you cannot reclaim the VAT on your purchases, with the only exception being certain capital assets that are over £2,000. You can also keep the difference between what you pay to HMRC and charge to your customers. This scheme is only suitable for businesses that have a turnover of £150,000 or less, excluding VAT. It is ideal for those that are looking for a way to simplify their VAT returns and, of course, pay less. Nonetheless, if your firm currently reclaims VAT regularly, and relies on this, it may not be the right option for you. Therefore, you need to talk to a tax return accountant who can give you specific advice for your business. Accountants Chichester wide can also handle the process of joining the scheme and ensuring your VAT is paid correctly.
If you are wondering whether the VAT Flat Rate Scheme is right for you, or whether you should opt for a different scheme, the best thing to do is contact a reputable Chichester tax office and accountancy firm. This is exactly what you have with us at AMG Financial Chartered Tax Advisers & Accountants. Discover more about our accountants and tax specialists at https://amgfinancial.co.uk.