{"id":5455,"date":"2022-04-20T12:00:00","date_gmt":"2022-04-20T11:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=5455"},"modified":"2026-07-09T15:31:26","modified_gmt":"2026-07-09T14:31:26","slug":"vat-flat-rate-scheme","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/vat-flat-rate-scheme\/","title":{"rendered":"The VAT Flat Rate Scheme explained"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tThe VAT Flat Rate Scheme explained\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2022-04-20T12:00:00+01:00\">20 April, 2022<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"The VAT Flat Rate Scheme explained\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/vat-flat-rate-scheme\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/asavinwattanajantra\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-350x350.jpg\" class=\"entry-author__image\" alt=\"Asavin\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-768x768.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-810x810.jpg 810w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin.jpg 1000w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Asavin Wattanajantra<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Getting VAT right is an inescapable part of being in business for all but the smallest organisations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That\u2019s why you should consider whether you could make your life a little easier by applying to join the VAT Flat Rate Scheme.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Read this article to learn what VAT is, find out about the VAT Flat Rate Scheme and discover if your business is eligible for it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s what we cover:<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#what-anchor-link\" data-level=\"2\">What is VAT?<\/a><\/li><li><a href=\"#vat-anchor-link\" data-level=\"2\">What is the VAT Flat Rate Scheme?<\/a><\/li><li><a href=\"#is-anchor-link\" data-level=\"2\">VAT Flat Rate Scheme eligibility requirements<\/a><\/li><li><a href=\"#how-anchor-link\" data-level=\"2\">How does Making Tax Digital for VAT affect the flat rate scheme?<\/a><ul><li><a href=\"#key-changes\" data-level=\"3\">Key changes under MTD for VAT<\/a><\/li><li><a href=\"#what-stays\" data-level=\"3\">What stays the same?<\/a><\/li><li><a href=\"#additional\" data-level=\"3\">Additional considerations<\/a><\/li><li><a href=\"#benefits\" data-level=\"3\">Benefits of combining MTD and the Flat Rate Scheme<\/a><\/li><\/ul><\/li><li><a href=\"#standard-anchor-link\" data-level=\"2\">Standard VAT Accounting Scheme vs VAT Flat Rate Scheme<\/a><\/li><li><a href=\"#pros-anchor-link\" data-level=\"2\">Pros and cons of the VAT Flat Rate Scheme<\/a><\/li><li><a href=\"#to-anchor-link\" data-level=\"2\">How to register for the VAT Flat Rate Scheme<\/a><\/li><li><a href=\"#final-anchor-link\" data-level=\"2\">Final thoughts on the VAT Flat Rate Scheme<\/a><\/li><\/ul><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-gate-ffabad26-25d2-42df-b1e9-bf3b47c5d3f9\">Download your free copy of A guide to Making Tax Digital for VAT &#8211; plus your bonus MTD for VAT checklist &#8211; and get your business ready for changes in 2022<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-anchor-link\">What is VAT?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-is-vat\/\">VAT (value-added tax)<\/a> is a tax on the sales of goods and services paid by consumers. For example, if a VAT-registered business sells a widget for \u00a31, they will charge the customer \u00a31.20 (assuming the 20% rate applies).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They will then pass on the VAT they collect to the government, typically on a quarterly basis, via a VAT Return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Most items sold by business attract VAT. This is typically the standard rate of 20%, but a reduced rate of 5% is also used for many items, while there\u2019s also a zero rate. The latter isn\u2019t the same as something being VAT-free because any zero-rated item must still be included in your VAT record keeping).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The taxable turnover threshold that determines whether a business must be <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/should-i-register-for-vat\/\">registered for VAT<\/a> is \u00a390,000 per 12 month rolling period (2024\/25).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At that point, the business must start accounting for the output VAT (what they charge on their sales), and the input VAT (what they pay in purchases). The difference between input and output VAT is what you pay to the government and declare in the VAT Return.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"vat-anchor-link\"><strong>What is the VAT Flat Rate Scheme?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The HMRC flat rate scheme for small businesses, including smaller limited companies, has existed since the 2002 Budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s a simplification intended to relieve UK small business owners of some of the administrative <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tax-burden\/\">burden<\/a> involved with preparing VAT Returns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of accounting for input and output VAT, you simply pay a set rate as a percentage of your turnover. This rate varies, depending on what you do.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s also a higher flat rate of 16.5% for businesses considered to be <a href=\"https:\/\/www.gov.uk\/government\/publications\/vat-notice-733-flat-rate-scheme-for-small-businesses\/vat-notice-733-flat-rate-scheme-for-small-businesses#para4-4\">limited cost traders<\/a>. This was introduced to crack down on what the government felt were people abusing the scheme. These businesses spend little on goods, so had very little equivalent input VAT.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Nonetheless, it\u2019s still an option to be considered if you want simpler VAT accounting.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A <a href=\"https:\/\/www.gov.uk\/government\/publications\/tackling-aggressive-abuse-of-the-vat-flat-rate-scheme-technical-note\/tackling-aggressive-abuse-of-the-vat-flat-rate-scheme-technical-note\">limited cost trader<\/a> is defined as one whose VAT-inclusive expenditure on goods is either less than 2% of their VAT-inclusive turnover in a prescribed accounting period, or greater than 2% of their VAT-inclusive turnover, but less than \u00a31,000 per annum.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Making Tax Digital for VAT software<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">Discover how Sage Accounting can help you get your MTD for VAT submission right, calculate your bill and submit your VAT Return with ease.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/mtd-vat-software\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-10943\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Find out more<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"355\" height=\"352\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/CTA-dotdash-1x1-1.jpg\" class=\"single-cta__image\" alt=\"Sage graphic illustration\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/CTA-dotdash-1x1-1.jpg 355w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"is-anchor-link\"><strong>VAT Flat Rate Scheme eligibility requirements<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To be <a href=\"https:\/\/www.gov.uk\/vat-flat-rate-scheme\/eligibility\">eligible to join<\/a> the VAT Flat Rate Scheme, VAT flat rate scheme eligibility means your business must be <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/register-for-vat-online\/\">VAT-registered<\/a> and expect your VAT taxable turnover to be \u00a3150,000 or less (excluding VAT) in the next 12 months.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You have to leave the flat rate tax scheme if, on the anniversary of joining, your turnover in the past 12 months was more than \u00a3230,000 (including VAT) or if you expect it to be in the coming 12 months.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Alternatively, your business may wish to cancel its VAT registration if your turnover (excluding VAT) falls below the current VAT threshold.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The introduction of the 16.5% higher flat rate in 2017 may have reduced some of the attractiveness of the VAT Flat Rate Scheme to small businesses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, it\u2019s still important that you carefully consider whether it would be better for you to sign up for the scheme rather than the Standard VAT Accounting Scheme if you either want, or need, to become VAT-registered.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-anchor-link\">How does <strong>Making Tax Digital for VAT<\/strong> affect the flat rate scheme?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">With <strong><a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Making Tax Digital<\/a> (MTD) for VAT<\/strong>, all VAT-registered businesses must now account for VAT using compatible software and <strong>keep VAT accounting records digitally<\/strong>. This is a great opportunity to modernise your accounting processes, <strong>reduce admin, and take advantage of automation tools that save time and improve accuracy<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Just as the <strong>Flat Rate Scheme <\/strong>was designed to simplify VAT accounting, <strong>the MTD rules for businesses using the Flat Rate Scheme are also streamlined compared to standard VAT accounting. However, there are some important points to understand:<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"key-changes\"><strong>Key changes under MTD for VAT<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Digital record-keeping is mandatory<\/strong><br>\u00a0You must keep certain VAT records digitally, even if you use the flat rate scheme. This includes:<ul><li>Your business name, VAT registration number, and VAT accounting scheme.<\/li><\/ul>\n<ul class=\"wp-block-list\">\n<li>Details of your sales (supplies made), including VAT charged.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Fewer records than standard VAT accounting<\/strong><br>\u00a0Under the Flat Rate Scheme, you do <strong>not<\/strong> need to keep digital records of:<ul><li>Purchases, unless they are capital expenditure where you intend to reclaim input VAT.<\/li><\/ul>\n<ul class=\"wp-block-list\">\n<li>Relevant goods used to determine if you need to apply the limited cost business rate.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-stays\"><strong>What stays the same?<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The way you calculate VAT under the flat rate scheme does not change. You still apply the fixed percentage to your VAT-inclusive turnover.<\/li>\n\n\n\n<li>You continue to submit VAT returns quarterly, but now through <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/sage-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">MTD-compatible software<\/a>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"additional\"><strong>Additional considerations<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Bridging software<\/strong>: If you use spreadsheets to calculate your flat rate VAT, you\u2019ll need <a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/bridging-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">bridging software<\/a> to link your spreadsheet to HMRC\u2019s systems.<\/li>\n\n\n\n<li><strong>Limited cost business checks<\/strong>: You still need to assess whether you fall under the limited cost business category (which uses a higher flat rate of 16.5%). While you don\u2019t need to keep detailed purchase records digitally, you must retain evidence for compliance.<\/li>\n\n\n\n<li><strong>Penalties for non-compliance<\/strong>: Failure to comply with MTD requirements can lead to penalties, so ensure your software meets HMRC standards.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"benefits\"><strong>Benefits of combining MTD and the Flat Rate Scheme<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Simplified VAT accounting<\/strong>: The Flat Rate Scheme reduces complexity, and MTD automates submissions.<\/li>\n\n\n\n<li><strong>Improved accuracy<\/strong>: Digital records reduce errors and make audits easier.<\/li>\n\n\n\n<li><strong>Time savings<\/strong>: Less manual work and fewer calculations mean more time for your core business.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-gate-ffabad26-25d2-42df-b1e9-bf3b47c5d3f9\">Download your free copy of A guide to Making Tax Digital for VAT &#8211; plus your bonus MTD for VAT checklist &#8211; and get your business ready for changes in 2022<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"standard-anchor-link\">Standard VAT Accounting Scheme vs VAT Flat Rate Scheme<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Assuming the standard rate of VAT is applied with the Standard VAT accounting Scheme, your business must pay the 20% tax that it charged on eligible sales in the previous quarter to HMRC.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yet, you can also reclaim the VAT that you make on your purchases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a result, the amount of VAT that your business pays or claims back from HMRC is <a href=\"https:\/\/www.gov.uk\/vat-flat-rate-scheme\">usually the difference between<\/a> the VAT charged by your business to its customers and the VAT that your business pays on its own purchases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the VAT Flat Rate Scheme, your business pays a fixed rate of VAT to HMRC and can keep the difference between what you charge your customers and what you pay to HMRC.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can\u2019t reclaim VAT on your purchases, however, except for certain capital assets costing more than \u00a32,000.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Although limited cost businesses are restricted to a higher fixed rate of 16.5%, those businesses that don\u2019t fall into the limited cost category can apply <a href=\"https:\/\/www.gov.uk\/vat-flat-rate-scheme\/how-much-you-pay\" target=\"_blank\" rel=\"noreferrer noopener\">apply <a href=\"https:\/\/www.gov.uk\/vat-flat-rate-scheme\/how-much-you-pay\">VAT flat rate percentages<\/a><\/a> ranging from 4% to 14.5% to their gross turnover, including VAT, depending on the business sector or type.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An advertising agency would apply a fixed VAT flat rate of 11%, for example, with that figure falling to 9% for a textile manufacturer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are a number of other VAT schemes, such as the <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/vat-schemes-for-small-businesses\/\">cash accounting scheme<\/a>, that might be worth exploring too.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"pros-anchor-link\">Pros and cons of the VAT Flat Rate Scheme<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Simon Dolan, founder of <a href=\"https:\/\/www.dolanaccountancy.com\/\">Dolan Accountancy<\/a>, believes the HMRC Flat Rate Scheme continues to offer the benefits of less administration for business owners and a potential boost to profits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Once you know how to complete the online form, accounting for flat rate VAT is a fairly straightforward process since filling in a flat rate VAT return is usually easier than filling in a standard rate VAT return.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cYou will only need to tell HMRC how much you have charged in VAT in total,\u201d he says.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThere is no need to reconcile your receipts. There is also the opportunity to earn money from the flat rate scheme.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFor example, if you charge 20% VAT and you pay a flat rate percentage of 16.5% on gross sales, you keep the difference.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIn addition, if you are a new business, you can benefit from an extra 1% discount in your first year of trading.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The main disadvantage of the VAT Flat Rate Scheme, compared with the Standard VAT Accounting Scheme, is that a business can\u2019t reclaim VAT on its purchases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cDepending on your business, if you buy stock or you have a high amount of VATable expenses, you can\u2019t get the VAT back,\u201d Simon explains.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Wondering whether the VAT Flat Rate Scheme is the best option for your business?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Simon advises you to calculate whether the amount of VAT you could reclaim from your monthly expenses would outweigh the discount you get from participating in the scheme.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Graham Elliott is the director of City &amp; Cambridge Consultancy. He says one potential pitfall for businesses that use the VAT Flat Rate Scheme is most of a company\u2019s \u2018exempt\u2019 income \u2013 income it might earn from leasing out commercial land or property, for example \u2013 is taxed on the flat rate, with bank account interest being a notable exception.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMost <a href=\"https:\/\/www.gov.uk\/guidance\/vat-exemption-and-partial-exemption\">exempt income<\/a> is taxed on the flat rate, which is a major trap,\u201d he says. \u201cIn fact, this also applies to zero-rated and reduced-rated supplies.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another challenge for some businesses is identifying the correct VAT flat rate, based on their business type. This is because it is not always clear what trade class a business falls into.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFor many, the trade class is easy,\u201d says Graham. \u201cBut, for some, it is difficult because the classification is geared towards simple, mainstream trades.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cHMRC refuses to decide on the scheme user\u2019s behalf but can challenge the choice that the scheme user makes.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Zoe Gibbons, a partner at <a href=\"http:\/\/www.perrysaccountants.co.uk\/\">Perrys Chartered Accountants<\/a>, also points out that the likely growth rate of your business should be taken into account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the revenue of your business was likely to fast exceed the upper limit of \u00a3230,000, you would soon have to leave the Flat Rate Scheme anyway.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">She says: \u201cYour business should consider its business plan and forecast turnover figures because if it is expecting to grow quickly, it may be more beneficial to set up under the standard scheme initially to get into good practice.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The subtleties involved mean that choosing the VAT Flat Rate Scheme above the Standard VAT Accounting Scheme is not necessarily a straightforward taxation decision.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For this reason, Zoe believes you should discuss your options with your accountant if you have one.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">She says: \u201cAs each business is different, and will have a different set of circumstances, and VATable outputs and inputs, it is important to speak to your accountant to confirm which scheme would be most beneficial for the business, both from an administrative and a tax point of view.\u201d<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-gate-ffabad26-25d2-42df-b1e9-bf3b47c5d3f9\">Download your free copy of A guide to Making Tax Digital for VAT &#8211; plus your bonus MTD for VAT checklist &#8211; and get your business ready for changes in 2022<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"to-anchor-link\">How to register for the VAT Flat Rate Scheme<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Your business needs to be <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/register-for-vat-online\/\">registered for VAT<\/a> in order to join the VAT Flat Rate Scheme. It\u2019s possible to apply by post, phone or email but the easiest way is probably to fill in the online application form <a href=\"https:\/\/www.gov.uk\/government\/publications\/vat-application-to-join-the-flat-rate-scheme-vat600frs\">VAT600FRS<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To fill in the form, you\u2019ll need to following information:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Business name<\/li>\n\n\n\n<li>Business address (you just need to highlight whether it\u2019s located in the UK or not)<\/li>\n\n\n\n<li>Telephone number<\/li>\n\n\n\n<li>VAT registration number<\/li>\n\n\n\n<li>Details on your main business activity<\/li>\n\n\n\n<li>The flat rate percentage you\u2019ll use<\/li>\n\n\n\n<li>The date you\u2019d like to start using the VAT Flat Rate Scheme (HMRC will notify you of the date but you can opt for another date if necessary \u2013 you\u2019ll have to highlight the reason for your new date)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">To apply by post, you will need to download the form, fill it in and send it to the National Registration Service at: HM Revenue &amp; Customs, National Registration Unit, Imperial House, 77 Victoria Street, Grimsby, DN31 1DB.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For phone applications, contact the HMRC VAT Helpline on 0300 200 3700. Email applications can be made by sending a completed VAT600FRS form to <a href=\"mailto:frsapplications.vrs@hmrc.gov.uk\" target=\"_blank\" rel=\"noreferrer noopener\">frsapplications.vrs@hmrc.gov.uk<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final-anchor-link\">Final thoughts on the VAT Flat Rate Scheme<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Ultimately, the question of whether the VAT Flat Rate Scheme is right for your business will depend on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What your company does (that will determine the flat rate VAT sector and flat rate VAT tax rate that apply)<\/li>\n\n\n\n<li>What kinds of VATable outputs and inputs the business has<\/li>\n\n\n\n<li>How quickly its revenues might surpass the flat rate VAT limit<\/li>\n\n\n\n<li>Whether it earns \u2018exempt income\u2019.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If you have access to an accountant, they will be able to help you make the decision that is most appropriate for your business circumstances.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Editor&#8217;s note: This article was first published in November 2018 and has been updated for relevance.<\/em><\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">A guide to Making Tax Digital for VAT<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Need help with Making Tax Digital? Download this free guide to learn about MTD for VAT, so you can send your VAT Returns in line with HMRC&#8217;s requirements.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ffabad26-25d2-42df-b1e9-bf3b47c5d3f9\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/08\/MicrosoftTeams-image-4-1215x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/08\/MicrosoftTeams-image-4-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/mtd-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tMaking Tax Digital for businesses\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/need-to-know\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tNeed to know\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/tax\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tTax\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/vat\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tVAT\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-31395 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-bookkeeping tag-mtd-business tag-making-tax-digital-for-income-tax business_type-small-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/07\/mtd-tricks-1440x810.jpg\" class=\"card-post__image\" alt=\"A small business person working on MTD\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/07\/mtd-tricks-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/07\/mtd-tricks-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/07\/mtd-tricks-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-08T09:00:00+01:00\">8 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-quarterly-updates-supercharge-your-business\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tHow MTD quarterly updates can supercharge your business. Yes, really.\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tYour MTD quarterly update isn&#8217;t just about keeping HMRC happy. From live tax estimates to easier borrowing and smarter planning, here are the fringe benefits for sole traders and landlords that nobody talks about.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-30636 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-mtd-business tag-making-tax-digital-for-income-tax business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-quarterly-update\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/AdobeStock_737875163-684x384.jpg\" class=\"card-post__image\" alt=\"Man at a desk working through papers on a computer\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/AdobeStock_737875163-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/AdobeStock_737875163-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/AdobeStock_737875163-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-08T09:00:00+01:00\">8 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">19 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMTD quarterly updates: Everything you need to know\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-31363 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-mtd-business tag-making-tax-digital-for-income-tax business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-quarterly-updates-listicle\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1207391933-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1207391933-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1207391933-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1207391933-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-08T09:00:00+01:00\">8 August, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\t10 tips and tricks for your MTD quarterly update\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-10151 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-bookkeeping tag-business-finances tag-mtd-business tag-need-to-know tag-tax tag-vat business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-vat-business-tame-tax\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1166663659-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1166663659-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1166663659-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1166663659-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-31T10:48:56+01:00\">31 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMaking Tax Digital: how MTD for VAT helps your business tame tax\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-10038 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-bookkeeping tag-business-finances tag-mtd-business tag-need-to-know tag-tax business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-income-tax-needs-to-know\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1413633547-684x384.jpg\" class=\"card-post__image\" alt=\"Checking products to sell to customers\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1413633547-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1413633547-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1413633547-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-31T10:20:19+01:00\">31 July, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\t6 things you need to know about Making Tax Digital for Income Tax\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn about the VAT Flat Rate Scheme, see if your business is eligible, and discover how Making Tax Digital for VAT affects flat rate VAT.<\/p>\n","protected":false},"author":356,"featured_media":11585,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[6],"tags":[30,206,27,28],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[73,74],"imagine_tag":[142,333,109],"coauthors":[351],"class_list":["post-5455","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-mtd-business","tag-need-to-know","tag-tax","tag-vat","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Asavin Wattanajantra","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-656729024.jpg","imagine_tags":{"142":"Making Tax 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