Announcing our brand new extra service for the self-employed!
Have you heard of the VAT Flat Rate Scheme? It enables you to submit a claim for a VAT rebate on business items – and we can backdate it for four years.
Not sure if you should be paying VAT? Read on…
What is the VAT Flat Rate Scheme?
The government’s VAT Flat Rate Scheme (FRS) enables eligible businesses to pay a flat rate of VAT. This is lower than the usual 20%. Businesses continue to charge VAT at the higher percentage, pay at their lower flat rate and bolster your business account with the difference. Each type of work is categorised into a ‘sector’ and each sector has been allocated its own flat rate percentage.
How does the VAT FRS benefit me?
- You pay less VAT
- You get an extra 1% bonus in the first year you register for VAT
- You are probably able to claim a VAT rebate on business expenditure
Who is eligible for a VAT rebate?
You are eligible if you are self-employed with a maximum turnover of £150,000. You must have paid VAT on your business expenses and have VAT receipts as evidence.
What can I claim for in a VAT rebate claim?
Your first claim can include all allowable assets bought in the previous 4 years (even if they total less than £2,000). Otherwise you can claim the VAT on any asset valued at £2,000 upwards. For dual purpose items, you can claim the VAT on the percentage of business usage.
What is not included?
There is a list of things that are not included and it is essential that you check carefully before submission. For example, ‘business entertainment’ and private use items are not viable claims.
VAT Rebate Essentials
- Open a VAT account
- Keep and organise all your VAT invoices and receipts to show a record of you purchases and sales
- Declare any VAT rebate on your tax return as ‘additional income’ – yes, it is taxable (unfortunately)
HMRC have the power to investigate any business and they can issue fines for shoddy record keeping.
Our Service
There are a lot of ‘ifs’ and ‘buts’ written into HMRC’s regulations so that they cover every possible scenario. It takes time to work out exactly what applies to your business situation. Time that would be better spent on ‘actual work’ and that’s where we come in. Our VAT experts will help you to decide on the best VAT route for your business and then guide you through the practicalities. We establish your VAT account, guarantee the accuracy of your VAT Return and determine how much VAT rebate you are entitled to.
We are a professionally regulated business with decades of experience in delivering an individualised service for each client. We alleviate the hassle, save you time and if you’d rather not talk to HMRC yourself, we can do it on your behalf. We are specialists in providing a full accountancy service to our self-employed clients and we are committed to ensuring that your business works at the highest levels of tax efficiency.
