Flat Rate VAT
Could FRS help your business?
VAT can be a complicated area for self-employed contractors - to start with you have to work out which VAT scheme you should be on. If you earn over the VAT threshold you have to register for the standard VAT scheme, but if you earn under that it can benefiical for you to sign up to the Flat Rate Scheme.
How the Flat Rate Scheme (FRS) Works
The Flat Rate VAT Scheme (FRS) is designed to encourage more businesses to sign up for VAT – even if your workers invoice less than the HMRC threshold.
The scheme is an incentive provided by the government to help simplify taxes and means your workers will charge VAT on their invoices at 20%, but pay back HM Revenue and Customs at a lower rate.
Rather than accounting for the VAT on all of their purchases, when your workers do their quarterly report they will only pay a single flat rate percentage on what they invoice each quarter. This means workers will no longer have to record all their VAT receipts, and it will provide them with an additional income.
RIFT Accounting will manage the whole Flat Rate VAT process, from start to finish.
- Registration and set up
- Quarterly VAT Returns, based on the information you supply us
- All reporting and communication with HMRC
Deducting a fee which we will share with you – so you can earn from your referrals to us.
For a worker invoicing £700 a week, registering under the Flat Rate VAT scheme could save your workers £1,277 per year, and for every Worker you refer that registers with RIFT for this scheme, you could earn £96:
How Flat Rate VAT Referral earnings can offset the cost of indemnifying against HMRC status challenges, based on 10 x Workers:
RIFT Accounting looks after your company and you self-employed workforce, giving you total confidence that your workforce is fully compliant AND financially better off themselves.