VAT Flat Rate Scheme: Should You Use It?

TL;DR

• Who the Flat Rate Scheme suits
• Pros and cons

Eligibility and joining

• Turnover limits
• Limited cost trader rule

How FRS works

• Sector percentages
• The 1% first-year discount

Worked example

• Standard VAT vs FRS comparison

When to avoid FRS

• High input VAT
• Capital purchases

Switching schemes

• Timing and admin