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VAT Rebate and VAT Return services

Are you Self-employed?

You could be missing out on thousands of pounds worth of legitimate VAT rebates and savings through the VAT flat rate scheme. If you are not already registered for VAT you can claim back a VAT rebate for the last four years and get a continued saving moving forward. For any business which is already VAT registered it’s worth finding out if the FRS is right for you.

Agency Driver vat rebate

Here’s a VAT rebate example

John is a self employed agency driver.

We registered John for the VAT flat rate scheme and submitted his VAT return. He gained a total of £2632 in his first year of registration.

The figures:

  • Total annual income £28600
  • VAT at 20% is £5720
  • VAT Flat rate percentage charged at 9% ( for the first year ) £3088
  • Difference between £5720 and £3088 = £2632
  • VAT flat rate saving £2632

Who is the VAT FRS for?

The VAT flat rate scheme is for the self employed and limited company contractors that have an income of £150,000 or less.

If your business income is over the VAT threshold ( £83,000 ) you should be registered for VAT already. If you are not already registered for VAT you can still voluntarily registerand apply to join the flat rate scheme even though you earn under the VAT threshold.

You are eligible to join if you are:

  • Self employed or a limited company contractor
  • Your business turnover is below £150,000
  • Your business pays VAT on goods and services
  • VAT receipts are available showing what you have bought
  • You are already VAT registered you can switch to the flat rate scheme

How the flat rate scheme works

The scheme was set up by HMRC to make VAT easier for everyone.

Instead of having to work out and record VAT on individual transactions, one fixed-rate of VAT is applied to your gross turnover. Each sector of work type has been assigned its own rate by HMRC and payments are expected on a quarterly basis.

Is it really worth that much of a saving?

It all depends on the type of business you run.

HMRC have categorised each ‘Trade’ into ‘Sectors’ and each sector has its own fixed VAT percentage. The range is wide from 4% to 14.5%. Here are 2 examples: