How the Flat Rate Scheme saves you money on your VAT bill
HMRC’s Flat Rate Scheme (FRS) allows a company to pay a reduced fixed rate of VAT, meaning you keep the difference between the rate you charge to customers (20%) and the rate you have to pay back to the taxman.
In layman’s terms, you get to keep a bigger piece of the pie you charge out, and the taxman stays happy.
Who benefits from the Flat Rate Scheme?
Any business with a turnover under the £150,000 a year threshold could potentially benefit from the Flat Rate Scheme. Any industry can benefit, and just a few of the industries we’ve already helped with the FRS include…
Not at all. If you are signed up to the Flat Rate Scheme you will only need to leave the scheme once your profits reach a certain level.
On top of this, if it is your first year of being a VAT registered business under the FRS, you receive a 1% discount!