The flat rate scheme is an excellent scheme for the majority of contractors and freelancers.
Instead of using the standard set-up whereby the difference between the VAT on the company sales and the VAT paid for on company purchases is paid over to HMRC a flat rate of VAT is paid instead.
The business will still invoice its customers for VAT at 20% but the amount that is paid over to HMRC is a set percentage of the VAT inclusive invoice. Depending on the trade that your business carries out this flat rate will typically be somewhere between 11.5% and 14.5%.
Every time an invoice is raised a small profit is therefore made and over the course of the year this represents quite a significant saving – often enough to cover both accountancy and business insurance costs!
Another advantage is that under the flat rate VAT scheme there is no need to separate out the VAT on purchases which makes recording your business transactions far easier.
Applying for the flat rate scheme on your behalf is part of Integro Accounting’s fixed fee service and your accountant will discuss the suitability of the scheme with you in more detail.
Why Integro Accounting?
Integro Accounting is the UK’s only specialist provider of fixed fee, limited company accountancy services for contractors, consultants and freelancers that was established to an award winning standard – our Practice Manager, Maria Hickmott FCCA, won The British Accountancy Awards’ ‘Accountant of the Year’ in 2011.
We were set up with the vision of providing a service that is the ultimate for the dynamic, busy professional of today in a language you understand.
Integro Accounting have designed a bespoke service for the contractor who is always on the go; never forgetting that one size will never fit all.
The relationship you have with your accountant is the most important factor in our service which is why we will always offer unlimited contact with your own personal accountant; whether that contact is via the phone, email or face to face.
We have our 3 offices located in London, the South-West and on the Bedfordshire and Buckinghamshire border. There are also meeting locations in many of the major cities and towns across the Home counties, South-West and South Wales, all conveniently placed so that you never have to travel far to meet your accountant.
If you have any questions about contracting or would like to find out more about how Integro Accounting can help you and business please call Christian on 01525 303984, email firstname.lastname@example.org or request a callback.