I just wondered if anyone could offer a bit of advice on how the VAT Flat Rate Scheme works... I know that a 'flat rate' based on business sector is paid over (every quarter?) so does a return not need to be completed?
And does the client charge VAT on his invoices out in the normal way?
Any advice would be much appreciated.
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Yes
Sales invoices are prepared exactly as before.
VAT is calculated as % of GROSS (ie VAT Inclusive) turnover.
VAT returns must still be filed as before.
Look here:
http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm
and also follow the link through on how to complete your VAT return as it is a bit different.
And...
Whatever you do, don't ask where to put the flat rate expense in the accounts, I think if it is brought up again AW will schism!
Hidden traps
Be careful, almost everything becomes VATable including previously exempt supplies. It's not always as good as it seems.