The Standard rate of VAT changed to 20% from 17.5% with effect from 4 January 2011.
Changes to the flat rate scheme percentages
Alongside the changes to the Standard rate, the flat rate percentages for many trade sectors changed.
As for previous VAT rate changes, you will have to work out your gross sales for pre and post 4 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.
Read more about Flat rate VAT scheme