If your annual turnover is less than £150,000, you may be able to increase your profit using the Flat Rate Scheme for VAT. With some research and just a little extra paperwork, it's possible boost your bottom line by thousands of pounds.
Too many self-employed people don't know about the Flat Rate scheme and are missing out, according to Mark McLaren, managing director of accounting software provider Solar Accounts. "We find that many of our users are simply unaware of the Flat Rate Scheme", he says. "In today's difficult economic climate, this could prove a major competitive disadvantage."
How Does It Work?
Put simply, the Flat Rate Scheme could allow you to collect more VAT than you pay out. The difference results in extra profit for your business.
Normally, businesses have to keep track of how much VAT they...