VAT's flat?

My client has been in the VAT flat-rate scheme for several years and also operates annual accounting. Notice 733 and the regulations require a trader to leave the scheme when gross income in a year to the anniversary of joining the scheme exceeds £225 000 (£191 490 net).

Neither the notice nor the regulations make the conditions and effect of this very clear and I wonder if anyone else can help (as the National Advice Service just refer to the published guidance).

The notice states that use of the special flat-rate cash basis does not change the time of supply for any purpose other than accounting for the output tax. In the year to 31 March 2008 (the anniversary of joining the scheme) my client will have invoiced sales of about £230 000 gross and received £210 000 of the money. It seems to me that...