Member Article

Is it time to review your VAT Scheme?

Haines Watts Liverpool is advising small business owners across the North West to review their VAT scheme as there may be savings by using a more tax effective method.

Director of the Victoria Street office Russell Silverman is encouraging small business owners to undertake a simple review of their current VAT scheme which may result in a saving of hundreds of pounds by applying to join the Flat Rate Scheme. The Flat Rate VAT Scheme is an incentive provided by the government to help simplify taxes and means you charge VAT on your invoices at 20%, but pay back HM Revenue & Customs at a lower rate.

The Flat Rate Scheme is ideal for most Contractors, Freelancers, Consultants and Interim Managers. It is also the scheme that is recommended for businesses that have very few VAT chargeable purchases and expenses i.e. don’t buy much stock.

Haines Watts is an award-winning, fresh thinking accountancy firm that specialises in advising and supporting business owners. Combining industry expertise and knowledge, the Haines Watts Group works with more than 35,000 companies across the UK. Haines Watts believe in translating technical knowledge into sound commercial advice and actions a sounding board to help and support ideas and help achieve goals.

Russell said “There are many benefits to the Flat Rate Scheme, it does reduce the amount of paperwork and also if you are in your first year, you receive a 1% discount on the percentage you are expected to pay in the future.”

Like standard VAT, the Flat Rate Scheme still requires you to complete a quarterly VAT Return form, but is usually much simpler to calculate. The VAT percentage you pay is considerably lower than that of standard VAT rate and you keep the difference as profit.

Russell added “ By making the switch many of my new clients have made savings, resulting in an invaluable unexpected cash injection of funds.“

For more information about Haines Watts visit www.hwca.com/accountants-liverpool or call 0151 227 3463.

This was posted in Bdaily's Members' News section by Haines Watts Liverpool Limited .