Rated 5.0 on Google Fixed monthly fees, software included VAT, CIS, payroll and year end handled Liverpool, Wirral and Cheshire, UK-wide Run by Barnaby Byrom since 2023
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Flat rate VAT scheme or standard VAT: know which costs less

VAT flat rate scheme decisions matter when your limited company charges VAT, buys materials and pays suppliers in very different proportions.

5.0 on Google. Can’t recommend these guys enough, saved the day when our previous accountant hadn’t been filling properly and we were facing fines. Worth their… Regent Barbers · Read the reviews
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A few quick questions, then a fixed monthly fee in writing and the free VAT and structure check. About two minutes, no tie in.

Already VAT registeredCosts have changed

Flat rate looks simpler until your purchase VAT grows or the limited cost trader rules apply. The question is whether convenience is taking more from the bank than standard VAT would.

Concrete Accounts checks flat rate against standard VAT for trade and service limited companies in Liverpool and across the UK. Its fixed monthly fee includes software, and a free review on joining once found one client had overpaid £8,000 in VAT.

VAT flat rate scheme: Barnaby reviewing invoices with a business owner at a kitchen table Limited companies

The simple VAT choice that can quietly cost more

5.0 · Barnaby checksGet a free quote
  • Rated 5.0 on Google
  • Fixed monthly fees, software included
  • VAT, CIS, payroll and year end handled
  • Liverpool, Wirral and Cheshire, UK-wide

What the right VAT choice changes

01

Know which method costs less

See both methods compared against your sales, eligible purchases and normal spending.

02

Quote work without eating the VAT

Price jobs knowing how much VAT must stay aside for the next return.

03

Put aside the right amount

Base your VAT pot on the method your company actually uses.

Where the wrong scheme starts costing you

A simple choice can become expensive when nobody checks it after your business changes.

  • VAT

    “I was put on flat rate, then nobody checked the limited cost trader rules when our spending changed.”

    The rate applied can rise when qualifying goods are low. The simple method can then stop being the lower-cost choice.

  • Purchases

    “I buy materials on most jobs, but nobody compared the VAT I could reclaim under standard VAT.”

    Flat rate usually blocks recovery of VAT on everyday purchases. Regular material costs can change the answer.

  • Switch

    “My accountant files the return, but can’t explain why this method still suits the company.”

    A filed return only settles the quarter. It does not show whether another method would leave less VAT to pay.

  • Day 90

    What changes once VAT advice is in the room

    Your actual sales and costs decide the method. Changes in buying, hiring or pricing trigger another check. The amount for HMRC is planned before the return.

Quick check · no email

If your accountant can’t explain your VAT method, forecast the bill before it lands and reply this week, you have the wrong accountant

Answer three yes or no questions about the accountant handling your company now.

Question 1 of 3

Could they tell you this week whether your current VAT method still suits the business?

Flat rate and standard VAT: where the cost changes

Neither method wins every time because the answer depends on what you sell and buy.

Standard VAT

Charge VAT to customers at the normal rate.

Reclaim eligible VAT on business purchases.

Pay HMRC the difference shown on the return.

Takes more bookkeeping, but follows the VAT on real purchases.

Flat rate VAT

Pay HMRC a sector percentage of VAT-inclusive turnover.

Usually cannot reclaim VAT on everyday purchases.

Low spending on qualifying goods can trigger limited cost trader treatment.

Can work well where eligible purchase VAT stays low.

Eight checks before you stay or switch

A yes to each question means the current choice has been properly tested.

  • 01

    Do you know the flat rate percentage being used?

    It should match the work your company actually does.

  • 02

    Has limited cost trader treatment been checked?

    The test can change between VAT periods.

  • 03

    Is the payment based on VAT-inclusive turnover?

    Flat rate calculations use the amount including VAT.

  • 04

    Has eligible purchase VAT been compared?

    Standard VAT may suit companies with regular material costs.

  • 05

    Are large capital purchases planned before ordering?

    Certain qualifying assets receive different treatment.

  • 06

    Are reverse charge invoices handled separately?

    Construction invoices can need different VAT treatment.

  • 07

    Is the choice reviewed when spending changes?

    Hiring, materials and suppliers can alter the result.

  • 08

    Do you know what to put aside?

    The next payment should be planned before filing.

What we handle after the scheme decision

The choice works better when the rest of the company accounts are kept current.

VAT

VAT returns handled

Returns are prepared using the chosen method and the right treatment for each invoice.

Monthly

Bookkeeping that supports the choice

Sales and purchases stay current, so changes in your trading pattern are visible.

Year end

The wider tax bill planned

CIS, payroll, corporation tax and year end sit under one fixed monthly fee.

All Services →

Entry 01

The VAT review that found what filing missed

One review exposed an overpayment that had continued under the previous accountant.

Figure£8,000of VAT overpaid for years
Found byA fifteen minute check of one new client’s VAT returns.
ResultThe overpayment was claimed back after the review found it in the filed returns.
AlsoThe same review checks method choice, treatment of costs and returns already filed.
Entry 02
Found by
Result

Clients described by type. Names withheld.

What clients say

Can’t recommend these guys enough, saved the day when our previous accountant hadn’t been filling properly and we were facing fines. Worth their weight in gold!
Regent BarbersGoogle review · 10 months ago
Exceptional service. Communication is clear, timely, and consistently accessible. After years of dealing with an accountant who was difficult to reach and overly formal, working with someone this reliable and solution focused has been a significant improvement. Strongly recommend.
James HenryGoogle review · 10 months ago
I’ve been blown away by the service from Barnaby! My accounts went from being a constant mental burden to something I feel completely under control — all thanks to him. Now I can shift my mental energy to running my business rather than worrying about unexpected tax bills. Barnaby not only stays on top of everything, but also sends me financial reports so I have clarity and always know exactly what’s going on, which has made running my business enjoyable again!
Oliver NoakesGoogle review · 10 months ago

How we decide before the next return

The answer comes from your company, rather than a rule chosen years ago.

Before day one

See where the VAT goes

We check turnover, customer invoices, purchases and the method currently used.

Day 30

Compare both methods properly

We compare the payment under each method using your normal trading pattern.

Day 60

Check the traps before filing

Limited cost trader treatment and the domestic reverse charge are checked where relevant.

Day 90

Keep the next bill planned

You know what to put aside and when the choice needs checking again.

Who the monthly service will not suit

A sole trader below the VAT threshold with no plan to incorporate.

A new side business without established turnover.

Someone wanting a one-off return with no ongoing accounting work.

Anyone asking for filed amounts to be changed without proper evidence.

The set-up review will tell you plainly whether the monthly service fits.

Questions directors ask before choosing a VAT method

Does the VAT flat rate scheme come with the monthly accounting service?

A fixed monthly service can include bookkeeping, VAT returns, CIS, payroll, year-end accounts, corporation tax and director self assessment, with software included. The exact scope is agreed before work starts. We also review whether flat rate or standard VAT suits how your company earns and spends.

Can you check the scheme if I already have an accountant?

Yes. The free VAT and structure check can compare your current method with standard VAT using your normal sales and purchases. You do not need to decide about switching before that check. If your existing accountant has chosen the right method and reviews it properly, Barnaby will say so.

Do we have to move accounting software?

Usually, no. We first check what you use, whether the VAT settings are correct and whether the bookkeeping supports the returns. If a move is sensible, the cloud software is included within the fixed monthly fee and the opening balances are brought across as part of onboarding.

What happens with our current accountant if we switch?

Concrete Accounts contacts your previous accountant directly and requests the information needed for the handover. Onboarding is free and normally completed in the first week. There are no catch-up fees for moving, although rules apply where earlier work is missing or returns need correcting.

How do I know if the VAT flat rate scheme is costing my company money?

Compare the flat rate payment with the VAT you would pay under the standard method. The comparison should use your VAT-inclusive sales, eligible purchase VAT and normal spending pattern. Regular materials, equipment or other VAT-bearing costs can make standard VAT more suitable, while low eligible purchase VAT may favour flat rate.

What is the limited cost trader trap?

A limited cost trader is a business with low spending on qualifying goods for the VAT period. Services and many common business costs do not count as goods for this test. When the rules apply, a higher flat rate is used, which can remove much of the benefit expected from the simpler method.