Key domestic legislation: VAT Regulations 1995 (SI 1995/2518), Part VIIA
The flat rate scheme for small business was designed to simplify VAT accounting, allowing businesses to calculate the amount of VAT they owe by using a simplified calculation. Businesses with annual taxable turnover of £150,000 or less can apply to use the scheme. Applications are made by completing and submitting form VAT 600FRS (or form VAT 600AA/FRS if applying to join the annual accounting scheme and the flat rate scheme together).
The forms can be found at:
www.gov.uk/government/publications/vat-application-to-join-the-flat-rate-scheme-vat600frs
Most businesses are obliged to calculate the amount of VAT they owe to HMRC by adding up VAT on sales and deducting VAT on expenditure.
Users of the flat
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Web page updated on 17 Mar 2025 16:30