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VAT I am about to set up an antiques shop. How is VAT likely to affect me? I know a businessperson who has to prepare only one VAT return a year. How is this possible?

This person is obviously taking advantage of the VAT Annual Accounting Scheme. To qualify for this scheme, you must have been registered for at least a year, you must reasonably expect your turnover not to exceed £660,000 in the next 12 months, and you must not owe more than a small amount of VAT to Customs. Depending on your past level of turnover, you may be required to make agreed interim payments to Customs monthly or quarterly, or not at all. You have to file your annual return and pay any outstanding VAT within two months of your year end. The major advantages of this scheme are the reduced number of returns and the consequent reduced exposure to penalties.

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