What is the main purpose of the VAT flat rate scheme?

The main purpose of the VAT flat rate scheme is to simplify VAT accounting for small businesses by allowing them to pay a fixed percentage of their turnover as VAT. This approach reduces the administrative burden associated with tracking individual sales and purchases, as businesses do not need to calculate the actual VAT on each transaction. Instead, they apply the fixed rate to their gross turnover. This scheme is particularly beneficial for small businesses that may find the standard VAT accounting processes cumbersome and time-consuming.

In the context of the other choices, it's important to note that the flat rate scheme does not involve avoiding VAT on certain supplies, nor does it aim to help businesses claim back input VAT more effectively. In fact, under this scheme, businesses generally cannot reclaim all the input VAT as they would under standard VAT rules, as the fixed rate they pay can be less than the amount of VAT they might typically recover. Additionally, the scheme is designed to maintain the existing VAT rate rather than increase it for small businesses.