What is the UK VAT Flat Rate Scheme?
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📋 Direct Answer
The UK VAT Flat Rate Scheme (FRS) lets small businesses pay VAT as a fixed percentage of gross turnover instead of tracking input/output VAT on each transaction. Percentages vary by business type (e.g., retail: 7.5%, IT consultant: 14.5%). Eligible if turnover is ≤£150,000. Can save time but may increase or decrease total VAT paid depending on your input costs.
1
Requirements
Free
Est. Total Cost
2-4 weeks
Timeline
Item by Item
OptionalApply for FRSFree2-4 weeks
- 1Check eligibility (turnover ≤£150,000)
- 2Register via HMRC online services
- 3Determine your business category and flat rate percentage
- 4Apply flat rate to gross turnover each quarter
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