If you use the Flat Rate Scheme (FRS) for VAT, you need to be aware that the government is tightening up the rules to catch some businesses that are gaining what they consider to be too much of an advantage. These are businesses with low costs, referred to as ‘limited cost traders’, so that the VAT they pay under FRS is much lower than they would pay under the accrual basis.

Such businesses are to have their FRS VAT rate increased to 16.5%.

If you think you’re going to be affected, or need to know more, please contact us

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