Ref post 73:
Don’t underestimate the perception of VAT to shopkeepers on flat rate schemes. Basically they pay a set percentage of turnover as vat instead of actually calculating vat paid to suppliers vs vat collected from customers (Hmrc have percentages calculated for all sorts of businesses e,g a rate for hair dressers, a rate for fish and chip shops, a rate for newsagents etc etc).
These should work out broadly the same amounts, but save businesses the admin of working out vat on thousands of small transactions(more critical before Epos till systems etc I suspect) but many small business owners just view it as another expense.