VAT Flat Rate Scheme – SD

“By using the VAT Flat Rate Scheme, some smaller businesses can benefit from paying a lower percentage of VAT to HMRC.

For example, a self-catering accommodation business that charges customers the standard rate of 20% only has to pay HMRC 10.5%, therefore retaining 9.5% of the difference. This mainly suits businesses with low operating costs as no VAT can be reclaimed on business expenses.”