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HMRC VAT flat rate scheme and the travel industry

Details

It is well known that the current rate of VAT in the UK is 20%. Self-employed agents and small businesses in the travel industry previously benefitted from the VAT flat rate scheme. This meant that they only had to account for 10.5% VAT, based on commissions earned, with the remaining 9.5% being retained to cover business costs. However, on 1 April 2017 revisions to the VAT flat rate scheme came into effect.

The link to this introduction sets out how this will affect the travel industry and considers:

1. The history behind the scheme
2. The criteria to benefit from the scheme
3. What the VAT flat rate scheme is
4. What limited costs traders are
5. Operational issues/what to be aware of

For more information, read the full article