not quite an early april fool as the flat rate vat scheme alters on 1st april.
a new percentage rate of 16.5% will apply to ‘limited cost’ businesses, who use the flat rate scheme but spend little on goods.
this can mean an increase of £thousands for some (again mainly small) businesses.
we have been costing and advising clients on the impact of this, and the benefit or otherwise of reverting to a ‘standard’ scheme.
if you wish to discuss this further, please do not hesitate to contact us as soon as possible.