Flat rate scheme

Despite the outdated claim of Chancellor of the Exchequer Lord Barber on 1 April 1973 that VAT would be a simple tax, in 2002 the government brought in the flat rate scheme to simplify the administration for smaller businesses. From discussions with fellow professionals, it is clear that the flat rate scheme is currently still used by many small businesses as a means of simplifying the administrative burden arising from accounting for VAT. However, it has also become clear that the latest rule change makes the flat rate scheme more complex again and it is now questionable whether the flat rate scheme will continue to be worthwhile for many small businesses.

Vaughn Chown reviews the new rules and limited cost traders – click here for the full article Flat Rate Scheme – De Voil Indirect Tax Intelligence.