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Flat Rate Scheme - 'It's Complicated!'

November 2016

Autumn Statement - FRS changes

As part of his first Autumn Statement, the Chancellor has announced some changes to the operation of the FRS.  The scheme aimed at simplifying VAT accounting for small businesses has, in the true traditions of the 'Simple Tax', just become more complicated.  Full details can be found via the link below but it seems that all businesses using the FRS will now have to undertake a further test to determine whether they can continue using the appropriate sector flat rate % or the new limited cost rate of 16.5%!

https://www.gov.uk/government/publications/tackling-aggressive-abuse-of-the-vat-flat-rate-scheme-technical-note/tackling-aggressive-abuse-of-the-vat-flat-rate-scheme-technical-note

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