What are the differences between the normal VAT scheme and the Flat Rate scheme?

On a normal VAT scheme a company charges VAT at 20% and pays this VAT to HMRC at less the VAT paid out on expenses. Brought in to help small business, the Flat Rate Scheme allows eligible businesses to calculate their net VAT liability as a flat rate percentage of their total turnover, inclusive of VAT. If you do not have many expenses to put through your company on a monthly basis, you may very well benefit from this.

By graeme on June 27, 2011

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