VAT can be a headache for small businesses. Things to remember:
1. If your turnover drops below the VAT deregistration limits consider deregistering for VAT!
https://www.gov.uk/vat-registration/cancel-registration
2. Look at the Cash Accounting method where you only pay VAT when you receive the money from your customers.
https://www.gov.uk/vat-cash-accounting-scheme
3. Consider the Annual Accounting method where you submit one return each year rather than four. It can help with managing your cash flow.
https://www.gov.uk/vat-annual-accounting-scheme
4. Consider the Flat Rate Scheme. It is simpler than the standard VAT method and may save you money! Take care when deciding which Flat Rate percentage to use
https://www.gov.uk/vat-flat-rate-scheme
5. Beware of the changes to the Flat Rate Scheme from 1st April 2017 For certain businesses the published Flat rate percentages can no longer be used, and a specific rate must be used which is currently 16.5%. These are businesses known as “Limited Cost Traders” where expenditure on certain goods is below the limits. This can catch businesses out, and the cost can be very high. Changing to an Annual Accounting Scheme may enable the business to stay within the criteria and continue to use their existing Flat Rate Percentage.
https://www.gov.uk/vat-flat-rate-scheme/how-much-you-pay
6. Making Tax Digital for VAT is now mandatory
For more information see https://www.gov.uk/government/collections/making-tax-digital-for-vat
7. Use accounting software that automates things as much as possible for you to free up your time to run your business.