VAT for Trades: Flat Rate vs Standard in 10 Minutes

Understanding VAT is essential for UK trades. Here's a quick comparison of your options.

Standard VAT Accounting

• Claim back VAT on all business purchases
• More admin work required
• Best for businesses with high input costs

Flat Rate Scheme

• Simpler accounting
• Fixed percentage based on your trade
• Less VAT to reclaim but easier admin

Which Should You Choose?

Consider your:

• Annual turnover
• Input costs
• Administrative capacity
• Business structure

Most trades benefit from the Flat Rate Scheme due to its simplicity.