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16,000
Restaurateurs Now Eligible For Simpler VAT |
More than
16,000 licensed restaurateurs are now eligible for simpler VAT - only
filing a single annual return, and paying their tax bill monthly.
From 1 April,
businesses with a turnover up to £1.35 million are able to join
the Annual Accounting VAT simplification scheme. More than one
million businesses can now join the scheme, allowing them to spread
their VAT payments throughout the year instead of grappling with a
lump sum every quarter.
"We know
a lot of businesses find a quarterly VAT bill difficult to manage in
terms of cashflow, says John Brandwood of HM Revenue & Customs
(HMRC). "Membership of the Annual Accounting Scheme is designed
to make those outgoings more manageable."
"Adopting
the Annual Accounting Scheme is also cheaper for businesses - we
estimate that completing only one return a year instead of four will
save businesses more than £100 annually."
Before 1
April, only businesses with a turnover up to £660,000 could join
the scheme.
The Annual
Accounting Scheme is just one of several designed to help small
businesses. The Cash Accounting Scheme allows businesses to pay VAT
only when they receive payment from their customers, while the Flat
Rate Scheme allows businesses to calculate their VAT by applying a
flat rate percentage to their total turnover.
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