More than 16,000 licensed restaurateurs are now eligible for simpler VAT � only filing a single annual return, and paying their tax bill monthly.

From 1 April, businesses with a turnover up to �1.35 million are able to join the Annual Accounting VAT simplification scheme. More than one million businesses can now join the scheme, allowing them to spread their VAT payments throughout the year instead of grappling with a lump sum every quarter.

�We know a lot of businesses find a quarterly VAT bill difficult to manage in terms of cashflow, says John Brandwood of HM Revenue & Customs (HMRC). �Membership of the Annual Accounting Scheme is designed to make those outgoings more manageable.�

�Adopting the Annual Accounting Scheme is also cheaper for businesses � we estimate that completing only one return a year instead of four will save businesses more than �100 annually.�

Before 1 April, only businesses with a turnover up to �660,000 could join the scheme.

The Annual Accounting Scheme is just one of several designed to help small businesses. The Cash Accounting Scheme allows businesses to pay VAT only when they receive payment from their customers, while the Flat Rate Scheme allows businesses to calculate their VAT by applying a flat rate percentage to their total turnover.

Notes for editors 1. HM Revenue & Customs estimates that 16,200 licensed restaurants have a turnover of less than �1.35 million. 2. 1.5 million VAT-registered small businesses are eligible to join the Annual Accounting Scheme. 3. Currently around 10,000 businesses participate in the Annual Accounting Scheme. 4. The annual compliance cost saving to businesses participating in the Scheme is estimated to be �110.

Issued by HM Revenue & Customs Media Relations Team Press enquiries only please contact: Jan Marszewski Tel: 020 7147 0798 E-mail: jan.marszewski@hmrc.gsi.gov.uk Out of hours Tel: 07860 359544

Website www.hmrc.gov.uk