Is Your VAT Killing Your Cashflow? Here’s A Better Way…
Recently, one of my coaching clients asked me a brilliant question.
After watching me present yet another cashflow diagram showing the familiar pattern – two months positive, one month negative due to VAT payments – they wondered why I hadn’t mentioned the VAT Annual Accounting Scheme.
And you know what? They were absolutely right. This is a game-changer that not enough small business owners know about.
What’s The VAT Annual Accounting Scheme?
Let me break this down simply for you. Instead of the usual quarterly VAT rollercoaster, this scheme offers:
- Just ONE VAT return per year (yes, you read that right!)
- Monthly advance payments to spread the cost
- A final balancing payment (or refund) at the year-end
Why Consider This For Your Business?
The biggest win? It turns your VAT from a quarterly mountain into manageable monthly molehills.
Think about it – no more scrambling to find large sums every quarter.
Instead, you’re making smaller, predictable monthly payments that you can actually plan for.
Is This Right For You?
If your business turnover is under £1.35m and you’re VAT registered, this could be perfect for you.
Many of my clients across Surrey and Hampshire have found this scheme transformative for their cashflow management.
As one business owner told me, “We’ve been using it for 16 years, and it makes life so much easier.” That’s exactly the kind of practical solution I love sharing with my clients.
Want to learn more? You can find the full details at www.gov.uk/vat-annual-accounting-scheme, or let’s discuss if this could work for your business during our next coaching session.
Best wishes,
Jamie
P.S. Want to discover more strategies to improve your business finances? Join me at our next Entrepreneurs Circle meeting in Farnham, where I’ll be sharing more practical tips like this. Come as my guest and get a month’s free access to all our Entrepreneurs Circle tools and resources!
