In order for VAT to apply there must be a supply of goods or services which could either be standard rated, reduced rated, zero rated or exempt 3. Business rates paid to a local authority are in the form of statutory charge, and NOT a payment made in consideration for any supplies made. How does it work? With the VAT FRS, unlike the standard VAT, where you usually pay to HMRC the difference between what a business charges its customers for Sales VAT and what the business pays for Purchase VAT, with the FRS you will instead keep the difference between the VAT charged on your Sales, less the flat rate percentage. If HMRC make a mistake you can also make a claim for an interest payment. A claim means you have paid too much or reclaimed too little VAT. In can also occur if there is a delay in payment by HMRC. As a rule, HM Revenue and Customs will not pay interest because of a mistake that you made even if you paid too much tax. Interest Rate You Can Claim pay your VAT MOSS bill. Your payment must reach HMRC by the 20th of the month following the end of the return period. If the deadline falls on a weekend or bank holiday, your payment must arrive in HMRC’s bank account on the last working day before it. The time you need to allow depends on how you pay. The HMRC’s AMAP rates could be changing in 2019 however, after a recent public consultation on the impact of the current state of taxation and employee expenses. This could lead to changes in policy and therefore, new HMRC approved mileage rates in 2019.