Optional Flat Rate Scheme For Small Businesses
(HMCE Notice 733) Registration Allowed subject to certain exemptions, if expected turnover in the next 12 months is No more than £150,000 taxable supplies; once on the scheme the trader is not required to leave the scheme until his annual income exceeds £225,000.
Calculate vat payable by multiplying the flat rate percentage for the relevant trade sector by total income.
N.B. Supplies to other Vat registered businesses are invoiced at the normal rate for the supply