Does The New 16.5% VAT Flat Rate Percentage Apply To Your Business?
The new VAT flat rate of 16.5% started to apply from 1 April 2017 for “limited cost traders”.
A “limited cost trader” is one using the VAT flat rate scheme but where the VAT inclusive cost of goods for a year is less than 2% of VAT inclusive turnover, excluding certain specified items.
Those specified items include capital expenditure, food, fuel, and vehicle costs.
If you are currently using the VAT flat rate scheme contact us to discuss whether the changes will apply to you.