Should I switch to the VAT annual accounting scheme?
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I'm a VAT-registered freelance graphic designer and I recently heard about the VAT annual accounting scheme. From what I gather, you make advance payments by direct debit through the year and then only file one VAT return at the end of the year, with a balancing payment or refund.
Is that roughly right? What are the turnover limits for joining, and who does this scheme actually suit? I have a fairly steady income without big seasonal swings, and I sometimes struggle to get my quarterly paperwork together on time. Would annual accounting make my life easier, or are there downsides I should know about before asking HMRC to switch?
