The Standard rate of VAT changed back to 17.5% with effect from Friday 1 January 2010.
Changes to the flat rate scheme percentages
Alongside the changes to the Standard rate, the flat rate percentages for many trade sectors change and for some sectors they are not the same rates as they were using up to 30 November 2008.
If your VAT return period does not end on 31 December 2009, you will have to work out your gross sales for pre and post 1 January and apply the appropriate flat rate percentage to each.
Is the VAT flat rate scheme right for you?
Whether or not the VAT flat rate scheme is beneficial for you would depend upon the administration costs saving due to its simplicity weighed against the fact that in most circumstances, input VAT cannot be reclaimed.
We have created a handy calculator for you to quickly calculate whether you would be better off joining the scheme. Some businesses, in particular those with exempt supplies, may be worse off under the scheme.
Click here to read the rest of this guide (Flat rate VAT scheme)