THE underused VAT flat-rate scheme could save small businesses hours of time and cut the amount they spend, according to North-west accountants.
Accountancy firm UHY Hacker Young said the scheme was first introduced in 2002 and allows businesses to calculate net VAT liability as a flat-rate per centage of their total turnover.
The 2004 budget adds an extra one per cent reduction on the flat rate for a year, giving a further incentive to join the system.
The flat-rate scheme is open to businesses with a taxable turnover (excluding VAT) of up to £150, 000 and a total turnover of up to £187,500 per annum.
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