There has been a lot of comment about the changes to the VAT Flat Rate Scheme. In some cases, traders joined the scheme because they could make money on it. Others joined because their Accountants told them they could make money!
No wonder the Chancellor decided to restrict it. It was always a simplification scheme, not a way to earn money.
So, with two weeks to go to the changes taking effect, do your arithmetic. Leave the Scheme, if you wish. Deregister for VAT if you can. And, make a note what you are doing and why, just in case HMRC come knocking!
About Les Howard
Hi, I am a VAT Consultant, working mainly with charities. I am based in Cambridgeshire
I have over 20 years experience in VAT, and am currently also a part-time member of the Tax Tribunals.