Contact Condies’ VAT strategist to check whether the change is likely to affect your business
If you are currently using the Flat Rate Scheme for computing your VAT return figures you need to be aware that, as of 1 April 2017, this scheme is changing for business classed as “limited cost traders”.
A new rate of 16.5% will apply from 1 April 2017 for businesses spending less that 2% of their gross turnover (or more that 2% but less that £1,000) per year on goods, regardless of the sector they belong to.
Any business affected will need to consider whether returning to the normal VAT accounting system is preferable to applying the higher 16.5% rate.
If you are currently using the Flat Rate Scheme contact our VAT Strategist, Lynn Gemmell, on 01383 721421 or at firstname.lastname@example.org to check whether this change is likely to affect your business.