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    VAT - Alternative Schemes

  • Go to ...
  • annual accounting
  • cash accounting
  • flat rate scheme
  • other schemes
  •  


    Annual Accounting

    Eligibility

    Benefits

    An example payment profile for a company commencing using Annual Accounting Scheme from 1 January 2016:-

    Month from Scheme Start Month Monthly Payments Quarterly Payments
    1 Jan-16    
    2 Feb-16    
    3 Mar-16    
    4 Apr-16 1st Pay  
    5 May-16 2nd Pay  
    6 Jun-16 3rd Pay 1st Pay
    7 Jul-16 4th Pay  
    8 Aug-16 5th Pay  
    9 Sep-16 6th Pay 2nd Pay
    10 Oct-16 7th Pay  
    11 Nov-16 8th Pay  
    12 Dec-16 9th Pay 3rd Pay
    13 Jan-17    
    14 Feb-17 Bal Pay Bal Pay

    For further information on the annual accounting basis read VAT notice 732.

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    Cash Accounting

    Eligibility

    Benefits

    For further information on the cash accounting basis read VAT notice 731.

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    Flat Rate Scheme

    Eligibility

    For a business to qualify for the Flat Rate Scheme it must meet both of the following criteria:-

    The Inland Revenue have a "ready reckoner" which will aid a business to calculate the benefit or not of using the flat rate scheme. To use the ready reckoner go to the HMRC website.

    Benefits

    For further information on the flat rate scheme read VAT Notice 733.

    Flat Rates
    Type of business Flat Rate
    Accountancy or bookkeeping 14.5%
    Advertising 11.0%
    Agricultural services 11.0%
    Any other activity not listed elsewhere 12.0%
    Architect, civil and structural engineer or surveyor 14.5%
    Boarding or care of animals 12.0%
    Business services not listed elsewhere 12.0%
    Catering services including restaurants and takeaways 12.5%
    Computer and IT consultancy or data processing 14.5%
    Computer repair services 10.5%
    Entertainment or journalism 12.5%
    Estate agency or property management services 12.0%
    Farming or agriculture not listed elsewhere 6.5%
    Film, radio, television or video production 13.0%
    Financial services 13.5%
    Forestry or fishing 10.5%
    General building or construction services 9.5%
    Hairdressing or other beauty treatment services 13.0%
    Hiring or renting goods 9.5%
    Hotel or accommodation 10.5%
    Investigation or security 12.0%
    Labour-only building or construction services 14.5%
    Laundry or dry-cleaning services 12.0%
    Lawyer or legal services 14.5%
    Library, archive, museum or other cultural activity 9.5%
    Management consultancy 14.0%
    Manufacturing fabricated metal products 10.5%
    Manufacturing food 9.0%
    Manufacturing not listed elsewhere 9.5%
    Manufacturing yarn, textiles or clothing 9.0%
    Membership organisation 8.0%
    Mining or quarrying 10.0%
    Packaging 9.0%
    Photography 11.0%
    Post offices 5.0%
    Printing 8.5%
    Publishing 11.0%
    Pubs 6.5%
    Real estate activity not listed elsewhere 14.0%
    Repairing personal or household goods 10.0%
    Repairing vehicles 8.5%
    Retailing food, confectionery, tobacco, newspapers or children's clothing 4.0%
    Retailing pharmaceuticals, medical goods, cosmetics or toiletries 8.0%
    Retailing not listed elsewhere 7.5%
    Retailing vehicles or fuel 6.5%
    Secretarial services 13.0%
    Social work 11.0%
    Sport or recreation 8.5%
    Transport or storage, including couriers, freight, removals and taxis 10.0%
    Travel agency 10.5%
    Veterinary medicine 11.0%
    Wholesaling agricultural products 8.0%
    Wholesaling food 7.5%
    Wholesaling not listed elsewhere 8.5%

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    Other Schemes

    For further information on other alternative VAT schemes read the following VAT notices:-

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    Click Here to download the abacus Tax Tables pdf booklet

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