The Flat Rate Scheme is for small businesses that have a turnover of up to £150,000 on joining the scheme.
The scheme allows users to charge VAT at the prevailing rate but account for VAT at a ‘flat rate’ that has been determined by HMRC to give a reasonable estimation of the amount of VAT that a business in that trade category would pay after taking into account recoverable VAT on expenses. Tables for determining the level of VAT to be paid can be found on this site here: