I’m a small business – is there anything that will make VAT simpler?
There are a number of simplified arrangements to make VAT accounting easier for small businesses: • Annual Accounting If you use the annual accounting scheme you pay monthly or quarterly instalments towards an annual VAT bill. This evens out VAT payments and helps smooth cash flow. At the end of the year you submit a single annual return and any balance due. See Choose the right VAT scheme for your business for more information about the benefits. • Cash Accounting If you use this scheme, you account for VAT on the basis of payments you receive and make, rather than on invoices you issue and receive. This means you don’t pay us VAT until your customers pay you. See Choose the right VAT scheme for your business for more information about the benefits. • Flat Rate Scheme This makes VAT simpler by letting you calculate your VAT payment as a flat rate percentage of your turnover. The percentages are decided according to the trade sector your business is in. Under the scheme you won’t be ab
