This is a step-by-step guide to filling out the online flat-rate VAT form. It has been updated to take account of the new-look online form.

The flat rate VAT scheme is brilliant. Multiply your VATable income by the flat-rate amount. And that's it. You may even turn a small profit ...

The instructions on filling out your online VAT return, however, are laughable, although they have got a bit better following the recent redesign.

How to fill out your online VAT return if you're in the flat-rate scheme

Flat rate vat scheme online form - the new look

In the old days, the instructions were wrong. Now they are at least right. But here's what you need to do written in a less complicated way than HMRC manage it.

For most people, you still only enter two numbers:

• In box 1, you enter the amount of VAT you owe. So that's your income, including VAT, mutiplied by your FRVS rate. So if you had income of £12,000 INCLUDING VAT, and your FRVS rate was 10%, you would enter £1,200 here.
• In box 6, you enter your income INCLUDING VAT. So that's £12,000 in this example. With the old form, it told you to enter the amount excluding VAT. That was wrong, and they've now corrected it. So enter the amount INCLUDING VAT.

In the other boxes, enter a zero.

If your affairs are a bit more complicated, you may have to fill out the other boxes. This is explained here. But, essentially:

• You fill out box 2 only if you bought goods or services from other EU countries.
• Box 3 is calculated for you.
• Box 4 is usually 0 as you can't reclaim VAT you've paid under the FRVS. There are exceptions for capital expenditure over £2,000, VAT you've paid at initial registration, and reverse-charge purchases from abroad. For most people, none of this applies.
• Box 5 is calculated for you.
• Box 7 is usually 0, unless you've bought goods from another EU country or made a £2,000+ capital purchase.
• Box 8 and box 9 are applicable only if you've traded with other EU countries.

That's it, though. For most people, fill out box 1 and 6, and remember to enter your income INCLUDING VAT.