VAT is a tax that effects everyday life as well as the business administration you have to comply with in a modern business?
You usually submit a VAT Return to HM Revenue and Customs (HMRC) every 3 months. This period of time is known as your ‘accounting period.
Compliance with VAT is complex. Investigations by tax inspector can be intense and have big consequences. Therefore it is extremely important that your VAT returns are completed correctly and on time.
When a business has insignificant vatable inputs, perhaps because it is based at home, the VAT flat rate scheme may be attractive, especially when a 1% discount is given in the first year of registration.