First off, let me state, I'm way out of my depth here as I've never had anything to do with VAT registration in the past.

I'm just wondering how the VAT Flat Rate applies to retailers (such as us) if we were to voluntarily apply to pay VAT. I'm asking mainly for my daughter who has a successful sole trader ebay business going with an annual turnover of around £60,000. She pays VAT on the product she buys from a UK distributor and was wondering if the Flat Rate scheme would be beneficial to her. I realise that on the Flate Rate you cannot claim back VAT on business equipment, but was wondering about all the VAT she pays on products and raw materials each year.

I believe, for her type of business, the Flat Rate set by HMRC is 7.5%.

As I have no idea what all of this entails, I would appreciate any advice from members who are either already on this scheme, or know more about the ins and outs of it.

Thanks in advance.