What is the Flat Rate VAT scheme | Flat Rate VAT Explained
Вставка
- Опубліковано 9 лют 2025
- What is the Flat Rate VAT scheme? Throughout the video I'll be explaining everything you need to know for Flat Rate VAT so you no longer need to worry about having no idea what Flat Rate VAT is!
Throughout the video I'll be sharing my top tips on how you can make the most of your VAT situation, moreover we'll be discussing topics in the following order:
1. What is Flat Rate VAT.
2. How Flat Rate VAT works.
3. The Conventional and Unconventional Methods.
4. Thresholds of the Flat Rate Scheme.
5. Top Tips.
6. Rates on the Flat Rate VAT Scheme.
7. Limited Cost Businesses
8. Input and Output VAT on the Flat Rate Scheme
9. Example Calculations
10. Pros and Cons
🏢 To register for Flat Rate VAT you will need to register for 'Making Tax Digital' and keep digital records. There are plenty of useful software applications for this and the one I found the easiest to use with great customer service is Xero 🏢:
🤝 Xero Accounting Software 🤝:
tidd.ly/3dlN575
As promised throughout the video I have provided links to useful sources below:
🤝 Register a Limited Company with GOV.UK 🤝:
• How to Register a UK L...
™️ How to Register a Trademark (Step by Step Tutorial) ™ :
• How to Register a Trad...
📞 VAT Team Contact Details (gov.uk) 📞:
+44300 200 3700
Online VAT Enquiries at gov.uk:
www.tax.servic...
Over the next few months I'll be releasing more Business, E-Commerce and Marketing related content. So if you found this video helpful and want to stay tuned with more videos then please subscribe to my channel so I can keep these videos coming!
🔴 Subscribe 🔴:
/ @theholistichustle
hey man, I just found out about your channel and it’s been such a blessing ! lol I absolutely love it, and the knowledge you have on these subjects is incredible! All I needed really!!
My pleasure Arthur, I'm glad you like it! I'll keep them coming for you guys man! X
I just saw the video and it really had given me the easiest explanation on this subject
Glad I could help 🙌
Job well done. Very informative video.
Thanks Rehan, glad you found it useful! I'm always here so feel free to ask any questions 😊
Hey guys, here's a link for a separate video on Standard VAT: ua-cam.com/video/ncrPY-W8tcw/v-deo.html.
As a heads up, to register for any VAT scheme (including Flat Rate VAT) you will need to register for 'Making Tax Digital' and keep digital records. There are plenty of useful software applications for this and the one I found the easiest to use with great customer service is Xero:
tidd.ly/3dlN575.
It's great and cheap in comparison to most out there and you can sign up for a months trial for free! They also offer tons of other helpful free apps to help with things like stock management, payroll and more :).
PS. Thanks for all the comments and I'm happy to help as much as I can so feel free keep them coming!
thank you for explaning this. I was having a headache about it!!
My pleasure!
This video is very helpful :)
Thanks Xtian, glad it was useful and good luck with the future! 😊
Excellent
Thanks Burhan, I'm glad you enjoyed! VAT is a tough subject and takes so long to piece together so I thought I'd try and summarise a part of it 😊
@@TheHolisticHustle you are fantastic
What I can do since amazon is collecting the vat to my clients In the UK and I am in the 8.5% scheme?
Hi Raphael,
There's a few questions here, firstly which country is your company setup in?
If your company is setup in a country outside the UK then the online platform where you're selling is now responsible for collecting VAT and paying it to HMRC on behalf of the seller.
So you should really hire an accountant for this to work out the necessary adjustment to be made which should be submitted to HMRC to adjust the VAT paid.
Moreover, if you're outside the UK the Flat Rate scheme may not be the best option for you as you won't be able to claim back VAT on imports.
Moreover, since you're on the Flat Rate scheme and Amazon is no longer charging VAT on their commission and shipping charges (if you're using FBA) then you will need to take that into account on your adjustments.
This isn't straight forward and I would highly advise you contacting an accountant for this, particularly if you don't have any experience working as a VAT accountant 😊.
Hope that helps and good luck with your business 🙌. Feel free to let me know if you need help with anything else.
i love your videos. you should do group coaching.
Hey again Elsa! Thanks for your comments 😊.. Once I sell my business, sharing knowledge more often will certainly be on the cards and I'm sure group coaching will be part of that 👌
@@TheHolisticHustle don't forget to notify
Brilliant video! Thank you! I've got one question not related to VAT. If I am not a UK tax resident and my UK company is managed and controlled from overseas, is that true that the company will become a non-uk tax resident and should not pay UK corporate tax? I sell on Amazon (FBA+dropshipping from UK to UK) Thank you!
Hi Yaroslav,
This sounds like a question for an accountant who non-resident taxes. Unfortunately I wouldn't be able to answer this but I'm sure if you call up an accountant and express your interest in using their services they'll be happy to help!
Is uk vat flat rate available for outside UK business?
Hi Ana,
It depends where your business was originally set up! You will only be able to register for the UK Flat Rate scheme if your business was setup in the UK, however, some other countries within the EU offer their own flat rate schemes. I would strongly advise speaking to a local accountant about this 👍
God bless.
My pleasure and thanks for the comment 👍