UK HMRC has updated guidance for the new VAT flat rate scheme for limited cost businesses. The new scheme, announced as part of Autumn Statement 2016 ({News-2016-11-28/P/5- previous coverage}), provides for a 16.5% VAT flat rate on turnover of small businesses in any sector if the cost of goods inclusive of VAT is less than either:
- 2% of turnover; or
- GBP 1,000 per year (if costs exceed 2% of turnover).
For small businesses meeting the limited cost conditions, the new 16.5% flat rate must b…