I've just registered for the flat rate vat scheme.
In the old days if I didn't have a vat receipt I'd enter the item into the books gross and not claim the vat as an input. I'd therefore lose the vat but it would inflate the business expense by the amount of lost vat.
Under the flat rate scheme I'd still do the same - but in effect I'd be making a "profit" because I'm paying a flat rate of vat on the turnover irrecpective of input - but the business expenses "inflation" in a sense seems to me to work in the businesses interests.
Have I missed something? I recognise that I mifght have to account for the "vat profit" but is that all?