VAT schemes
Flat Rate Scheme
The VAT flat rate scheme was intended to reduce administration for VAT registered small businesses. It uses a single calculation to work out the VAT owed to HMRC, without the need for recording each and every sale/purchase. However, this scheme only helps a small percentage of businesses, and advice should be taken before applying to use this scheme.
Annual Accounting Scheme
Usually VAT registered businesses submit returns to HMRC 4 times a year. Using the Annual Accounting Scheme means that you can submit one VAT return a year, whilst paying installments on what you may owe to HMRC.
Cash Accounting Scheme
VAT is normally accounted for on the difference between sales and purchase invoices. If you use the Cash Accounting Scheme you pay VAT on sales when your customer pays you, and you claim VAT on purchases after paying your supplier. Here at Hawsons we have the expertise to advise which scheme is best for your business.