VAT Flat Rate Scheme
Definition
A simplified UK VAT scheme where a business pays a fixed percentage of its gross turnover as VAT instead of tracking input and output VAT in detail. It trades some accuracy for far simpler accounting.
Related Terms in International Tax
Corporation Tax (UK)
The tax UK companies pay on their profits, including trading profits, investment income and chargeable gains. Companies must file a return and pay by set deadlines after their accounting period ends.
National Insurance (UK)
UK contributions paid by employees, employers and the self-employed that fund state benefits and pensions. Different classes and rates apply depending on employment status and earnings.
Self Assessment (UK)
The UK system through which individuals with untaxed income — the self-employed, landlords and others — report income and pay tax by filing a return each year, rather than having all tax collected at source.
P60
A UK end-of-year certificate an employer gives each employee showing total pay and the tax and National Insurance deducted during the tax year. It is used to check tax and support claims and returns.
Stop memorising terms — let HelloBooks do the work
AI-assisted bookkeeping that handles invoicing, GST, reconciliations, and reports automatically. Free to start.