VAT

Explore the Flat Rate Scheme for VAT with this quick guide. Learn eligibility criteria, benefits, and considerations before joining.

The changes will affect everyone submitting VAT Returns for accounting periods starting on or after 1 January 2023. Any nil or repayment VAT returns received late will also be subject to late submission penalty points and financial penalties.

What is VAT, when do you have to register for VAT, what are the charges? We explain the basics here in the VAT FAQ.

Your agency must raise self-billed invoices for all transactions with your PSC named on the document for a period of up to twelve months (or the duration of the contract).

The tax point of supplies covered by self-billed invoices follows the normal rules, except that a self-billed invoice is only effective to create a tax point when issued within 14 days of the basic tax point.

If one of your customers wants to set up a self-billing arrangement with you, they’ll ask you to agree to this in writing. If you agree, they’ll give you a self -billing arrangement to sign.

It’s an administrative time saver. As a supplier, you do not need to produce invoices, as these are being generated by your client, saving you time.

Self-billing is an arrangement between a supplier (your PSC) and a customer (your agency or client). Both customer and supplier must be VAT registered.

Generally they are in place for 12 months and should be reviewed annually to ensure there are no changes that would warrant a revised agreement.