Month: March 2017

March 3, 2017 Mark No comments exist


New VAT Flat Rate

Latest news from HMRC is the Flat Rate Scheme for VAT is changing on 1st April 2017.


There will be a new VAT flat rate of 16.5%. It will apply to businesses in any sector, however, only if they have limited costs.




HMRC have said a limited cost trader will be defined as one whose VAT inclusive expenditure on goods is one of the following:

  • less than 2% of their VAT inclusive turnover in their prescribed period
  • greater than 2% of their VAT inclusive turnover but less than £1000 per annum if the prescribed accounting period is one year (if not one year then it will be the relevant proportion of £1000).

If you are using the Flat Rate Scheme or you are planning on joining the scheme then you will need to decide whether you should use this new rate.