who started the VAT flat rate scheme ?

who started the VAT flat rate scheme ?

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I've been explaining the changes to clients and a few are asking why the government was throwing so much free money at us in the first place, and a few have asked who's bright idea it was. Anybody remember which Chancellor brought it in originally ? 

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RLI
By lionofludesch
06th Apr 2017 17:20

Did we not copy the idea from the Irish ?

I always thought it was a cach idea but the Government makes up the rules.

To be fair, it's not the only idea I've thought was cach.

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paddle steamer
By DJKL
06th Apr 2017 19:45

“The flat rate scheme for VAT was introduced by HMRC in 2002 to simplify paperwork for small businesses when accounting for VAT,” explains James Abbott, owner and head of tax at contractor accountant Abbott Moore.

http://www.contractorcalculator.co.uk/contractors_guide_flat_rate_vat_sc...

If above is correct it is Labour and it was Brown.

Sources not verified.

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Replying to DJKL:
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By DMGbus
06th Apr 2017 20:20

The oldest VAT notice 733 that I have is the January 2003 edition which I have marked as "2ndEdn". As it makes reference to replacing notice 733 (April 2002) edition then it indicates that April 2002 was the original inroduction date of the FRS.

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RLI
By lionofludesch
07th Apr 2017 09:38

Don't forget the tax allowance to replace Child Benefit - which was such a big help to the low paid folk he was supposed to be representing.

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By Briar
07th Apr 2017 15:48

Brown was so wonderful to us accountants. 2 examples: Being able to recommend all my self-employed clients to incorporate and the tax they saved being more than my (increased) fees. Then the cash incentive to register for PAYE online which I shared equally with my newly incorporated clients was a good money maker.
Bring back Gordon!!

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