Pre-Budget Report -VAT Flat Rate Scheme
Changes to the VAT Flat Rate Scheme were announced as part of the Pre-Budget Report. The changes were necessitated by the reversion of the standard VAT rate to 17.5% from 1 January 2010. As part of this announcement a number of other changes have been incorporated to the flat rates to reflect the latest data relevant to specific sectors.
The VAT Flat Rate Scheme is a simplified VAT accounting scheme available to small businesses with a turnover of up to £150,000.
The new rates which are applicable from 1 January 2010 can be found detailed in the relevant Pre-Budget Report Note on the HMRC website atwww.hmrc.gov.uk/pbr2009/pbrn33.pdf