Q. We are a New Company and Looking to Use the VAT Flat Rate Scheme from December 2023. Is this better than the ‘Normal’ VAT for Record Keeping and VAT Returns?
A: The Flat Rate Scheme is a simpler method of working out your VAT because you will be calculating a net tax amount without reference to output tax and input tax. In that regard, the Scheme is simpler for you.
But there are eligibility conditions and you need to apply to HMRC to use the Scheme and you can’t operate it until after you have approval. It is not right for all businesses and we recommend speaking to you accountant, especially if you are in your first year as the flat rate percentage can be reduced by 1%.
