ContractorUK has provided you with a Flat Rate VAT calculator in order for you to calculate the income you would receive if using the Flat Rate VAT scheme. The Flat Rate Vat scheme (FRS) is available to all small businesses or sole proprietorships and differs from standard VAT accounting in that you pay a percentage of turnover rather than paying VAT on the difference between sales and purchases. While still charging clients the 20% VAT you can potentially give less to the taxman. The FRS rate differs from sector to sector but for IT contractors the norm is 14.5%. For more on the potential savings and possible pitfalls of the Flat Rate VAT scheme please click here.
By Laura Foster