VAT schemes - David Allen Accountants
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VAT schemes

Flat Rate Scheme

The Flat Rate Scheme reduces your administrative burden by simplifying the way that your VAT liability is calculated.

Sales invoices are issued as normal to the customer and the VAT payable is calculated based on your gross sales for the period.

The Flat Rate Scheme is suited to businesses where a small amount of expenses is incurred but be aware that there is a maximum turnover level for the scheme.  There is a limit to the amount of input VAT which can be claimed on assets and further considerations for those who sell to the European Union (EU).

Our VAT team will work with you to understand your business and advise whether joining the Flat Rate Scheme is right for you.

Please also see our Flat Rate Scheme business sector percentage table to establish your business category.

VAT refunds for DIY builders

The VAT DIY scheme applies to an individual who wants to construct (or convert) a dwelling for their own use.

If you buy an existing house, there is no VAT charged.  So to compensate those who decide to build their own home, the VAT DIY scheme allows you to claim back the VAT incurred on building materials.

Care must be taken to consider whether the dwelling would qualify under this scheme and unfortunately, there are certain costs which you are not eligible to claim the VAT on.  We can review your documentation and advise further on this.

Our team will assist you in completing the forms required by HMRC and collate the supporting documentation within the three month deadline.

EU VAT transactions

More businesses are now buying and selling goods and services to members of other EU countries.

There are strict requirements for the paperwork involved in any EU transaction and your VAT return and related forms must be correctly completed.

Businesses that supply services to another EU country may even be obliged to register for VAT in another country.

Please contact one of our VAT Specialists to discuss your requirements further.