https://taxagents.blog.gov.uk/2017/02/28/talking-points-changes-to-the-vat-flat-rate-scheme/

Talking Points Changes to the VAT Flat Rate Scheme

Welcome to my latest blog about the regular Talking Points meetings we run to provide you with updated information.

From 1 April 2017 we will introduce a new 16.5% VAT flat rate.  This will apply to businesses in any sector, but only if they have limited costs.

A limited cost trader will be defined as one whose VAT inclusive expenditure on goods is either:

  • less than 2% of their VAT inclusive turnover in a prescribed accounting period
  • greater than 2% of their VAT inclusive turnover but less than £1000 per annum if the prescribed accounting period is one year (if it is not one year, the figure is the relevant proportion of £1000).

Businesses using the Flat Rate Scheme (FRS), and new businesses joining the FRS, will need to decide whether they must use this new rate. This meeting will run through the details of how to work out whether a business has limited costs, to help you give the correct advice to your clients. As this will be a very popular subject we are running two meetings so you don’t miss out.

Wednesday 01 March midday to 1pm   Register now for this meeting

Wednesday 01 March 2pm to 3pm        Register now for this meeting

Don’t forget, if you have missed any of our earlier Talking Points meetings, you can watch the recordings here.

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