Romford Essex Accountants Blog: VAT Flat Rate Scheme - Calculating Stock Adjustment

A large number of small businesses now use the Flat Rate Scheme (FRS) which makes it easier for them to prepare their quarterly VAT Returns. You can apply to join the scheme if your taxable turnover will be £150,000 or less in the next year.

The business can continue to use the scheme until the total income (including VAT) for the year just gone has not risen above £230,000. So it is vital that the business keeps a check on its total income so as to ascertain whether it can keep using the FRS.