The flat rate VAT scheme is an incentive provided by the government to help simplify taxes and means you charge VAT on your invoices at 20% but only pay back HMRC at a lower rate. The VAT percentage you pay is considerably lower than that of the standard VAT rate, you then keep the difference as your profit.
The FRS is therefore the chosen scheme for most Contractors, Freelancers, Consultants and Interim Managers.
The flat rate scheme requires you to complete a quarterly VAT return form. You will need to charge the standard VAT rate, to your invoices, however… when you do your quarterly report you will only pay a single flat rate percentage on your turnover of each quarter.