From April 2017 there is a new 16.5% VAT flat rate for businesses with limited costs. A limited cost trader will be defined as one whose VAT inclusive expenditure on goods (excluding capital expenditure, food or drink, vehicles, vehicle parts and fuel) is either less than 2% of their VAT inclusive turnover or greater than 2% but less than £1,000 per annum.

For businesses continuing under the new 16.5% rate, there will be no financial benefit to remaining on the flat rate scheme.

If you are in the Bromley / Biggin Hill area and would like to discuss your VAT requirements please contact us