Lots of creative businesses benefit from being on the VAT Flat Rate Scheme (FRS).
When a business is on the FRS you don’t usually get to recover any VAT on the stuff you buy. Instead the VAT you pay over is just based on a percentage of your sales. But, in the right circumstances, it’s possible to claim VAT back on equipment you buy for your business.
Here’s the basic rules:
1. You need to spend more than £2,000 including the VAT
2. It’s fine to buy a package of stuff that comes to more than £2,000. So, a new computer, printer, monitor, software etc would all be fine. You need to make sure that you buy it all at the same time from the same supplier though.
3. Services don’t count. It needs to be equipment.
If you need any help with making the VAT system work best for you and your business then just get in touch.
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