VAT Schemes

The Tour Operators' Margin Scheme (TOMS) is a special VAT scheme for businesses that buy and resell travel services, accommodation, and certain other services in their own name. Instead of accounting for VAT on your full selling price, you only pay VAT on your profit margin —...

4 min read

The VAT Annual Accounting Scheme simplifies your VAT obligations by allowing you to submit just one VAT Return each year instead of four. You make advance payments throughout the year towards your VAT bill, then submit your annual return and make a final balancing payment (or...

7 min read

The VAT Cash Accounting Scheme allows you to account for VAT based on when money actually enters and leaves your bank account, rather than when you issue or receive invoices. This can significantly improve cash flow if you give customers time to pay, but you need to meet certain eligibility...

5 min read

The VAT Flat Rate Scheme is a simplified way for small businesses to calculate and pay VAT. Instead of working out the difference between VAT on sales and purchases, you apply a fixed percentage to your turnover and keep the difference between what you charge customers and what you pay HMRC....

6 min read

VAT margin schemes allow businesses dealing in certain second-hand goods to pay VAT only on their profit margin rather than the full selling price. Special rules apply depending on what you're selling—from horses and ponies to houseboats, caravans, antiques sold at auction, an...

10 min read

If you buy and sell second-hand goods, works of art, antiques, or collectors' items, VAT margin schemes let you pay VAT only on your profit (the margin) rather than on the full selling price. This can significantly reduce your VAT bill compared to standard VAT treatment. There are several different...

5 min read

VAT retail schemes are simplified methods for calculating VAT on sales to the public. If you run a shop or retail business and cannot work out the VAT on each individual sale, these schemes let you calculate VAT once per VAT return period instead of transaction-by-transaction....

6 min read