According to the taxman, many small businesses are unaware that they can simplify their VAT arrangements. HM Revenue and Customs has launched a campaign to promote VAT simplification schemes.

One of the schemes involves calculating VAT as a flat percentage of a firm’s turnover, rather than having to record and balance out all transactions. Under the annual accounting scheme, a business files a VAT return only once a year, while making nine interim payments at monthly intervals based on an estimated total for the year.

Using the cash accounting scheme, VAT is calculated and paid on the basis of the actual payments your business makes and receives, rather than on invoices. This can improve cashflow. If you are looking for advice, our solicitors can point you in the direction of expert accountancy services.