VAT Rebate Calculator

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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:

VAT flat rate scheme v Standard VAT example

Tony is a self employed construction worker and his vatable turnover is £110,000 a year.

Expenses: His only business expense for the year is his accountant at £500.

Standard VAT example

Using the standard VAT process

Output VAT £110,000 x 20% = £22,000

Input VAT reclaimed on expenses £500 x 20% = £83

VAT due to HMRC £21,917

VAT flat rate scheme example

Under the flat rate scheme the VAT percentage for his industry is 14.5%

£110,000 + VAT = £15950 x 14.5% = VAT due to HMRC £15950

Total saving under the VAT flat rate scheme £5967

What can I claim for under the FRS

Being in the VAT flat rate scheme means you don’t reclaim VAT on your purchases ( unless it’s an Asset worth £2000 including VAT ). What you reclaim is the percentage difference between the standard rate of VAT and whatever the rate is for your industry. If you have not registered for VAT in the past you can claim back any allowable assets bought within the last four years in your first VAT return ( even if they are worth less than £2000 including VAT ).

Do I need to fill in a VAT return?

Yes. A VAT return will need submitted at the end of each quarter. You can also de-register from VAT at any point. We can help you register, submit VAT returns and deregister as part of our service.

How can help me? is run by qualified accountants who specialise in VAT.

We deal with all aspects of accountancy and can help you decide if registering for VAT is right for you.

Our service:

  • Register you for VAT
  • Submit your VAT returns
  • Reclaim your VAT rebate
  • Handle all of your other accountancy needs
  • Give you great value for money

In addition:

  • We tailor our service to your specific requirements and make sure that you know what is best for your business.
  • We use our decades of experience as tax professionals to find you the most VAT efficient solution for your business.

This includes: deciding on the best way for you to pay VAT, getting your VAT accounts set up, submitting VAT rebate applications and filing VAT returns to HMRC.

Make a VAT enquiry

Just fill out the form below and we’ll do the rest…

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