March 2017

VAT Flat Rate Scheme: Legislation To Stop "Aggressive Abuse"

VAT-FRS-legislation

From 1 April 2017, a new level of VAT Flat Rate Scheme (FRS) is being introduced - 16.5% to users who meet the definition of 'Limited Cost Trader'. It's important you observe this new rate because, unlike other FRS review timescales, it's to be applied for each and every VAT return period. So you could dip in and out of the new rate with some regularity, depending on your trading patterns. Tax avoidance has featured hugely in recent budgets and this clampdown is all part of it.