BABC member Moore Kingston Smith shares insights into the 'reduction in the VAT rate: flat rate
In line with the temporary reduction in the VAT rate to 5% for certain businesses in the hospitality sector, the flat rates for smaller businesses have also been reduced.
The VAT flat rate scheme is designed to simplify accounting records of sales and purchases, and the steps necessary to calculate VAT liabilities. It allows for a fixed flat rate percentage to be applied to gross turnover to arrive at the VAT due.
