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(vi) VAT is one of the most difficult taxes to deal with  for small businesses. As it is charged on the turnover  of the business and not on the profits made.  The government makes the argument that a business  can claim the VAT back that it has paid but that is often  a great deal less than the business has collected.  The goverment’s position is that it is not the businesses  money and that it is their money. That is arguably true  and so in practical terms some care has to be taken in  VAT planning. And so there are options such as the Flat  Rate VAT Scheme that should  be used. Charles & Co. Consult