VAT Special Schemes

Businesses must leave the scheme if their total VAT inclusive income for the previous 12 months exceeds £230,000.

• Standard Accounting

• Annual Accounting Scheme

• Cash Accounting Scheme

• Flat Rate Scheme

A business must specifically apply to join this scheme

• Standard Accounting

• Annual Accounting Scheme

• Cash Accounting Scheme

• Flat Rate Scheme

A VAT return is normally completed and submitted to HMRC quarterly.

• Standard Accounting

• Annual Accounting Scheme

• Cash Accounting Scheme

• Flat Rate Scheme

It is possible that a balance of VAT receivable from HMRC will arise.

• Standard Accounting

• Annual Accounting Scheme

• Cash Accounting Scheme

• Flat Rate Scheme

Payments to HMRC for an existing business are made at the end of months 4 to 12 and each represent 10% of the estimated VAT liability.

• Standard Accounting

• Annual Accounting Scheme

• Cash Accounting Scheme

• Flat Rate Scheme

Special scheme which can be joined provided taxable turnover for the next 12 months is no more than £1,350,000.

• Standard Accounting

• Annual Accounting Scheme

• Cash Accounting Scheme

• Flat Rate Scheme

VAT invoices are issued to customers showing standard-rated supply at 20%

• Standard Accounting

• Annual Accounting Scheme

• Cash Accounting Scheme

• Flat Rate Scheme

Businesses must leave the scheme if their estimated taxable turnover for the next 12 months is more than £1,600,000.

• Standard Accounting

• Annual Accounting Scheme

• Cash Accounting Scheme

• Flat Rate Scheme

VAT is accounted for on the basis of invoices issued and received in a return period.

• Standard Accounting

• Annual Accounting Scheme

• Cash Accounting Scheme

• Flat Rate Scheme

VAT is accounted for on the basis of when payment is actually received from customers or made to suppliers.

• Standard Accounting

• Annual Accounting Scheme

• Cash Accounting Scheme

• Flat Rate Scheme