Flat rate scheme (FRS) — deciding whether to join the scheme | Tax Guidance

Flat rate scheme (FRS) — deciding whether to join the scheme

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note sets out points to consider when deciding whether to join the flat rate scheme (FRS).

For an overview of the FRS more broadly, see the Flat rate scheme (FRS) - overview guidance note.

See also De Voil Indirect Tax Service V2.199B and V2.199C.

Advantages of joining the FRS

The table below sets out some of the key advantages of joining the flat rate scheme (FRS).

Advantage	Explanation
Administrative simplicity	It can be much simpler to complete a VAT return under the FRS. This can reduce the amount of time a small business has to spend on VAT administration. In particular, if the scheme is used together with the annual accounting scheme it can make a significant difference to the cost of complying with VAT requirements. However, modern software can make basic recording

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