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My client registered for VAT in August 2008 using the flat-rate scheme.
On the first anniversary of the registration the historical turnover was above the limit for leaving the scheme.
However one particular contract was only due to run for a further six months so the client believed that it would have been able to justify remaining in the scheme on the grounds of future turnover.
No agreement to this effect was ever finalised with HMRC at that time.
Subsequently the client was able to extend the above-mentioned contract and turnover for the year to August 2010 is again above the scheme limits – but HMRC have now stated that the client must leave the scheme with effect from 30 September 2010.
Given the above circumstances do readers consider that there is a risk to the client with regard to potentially under-declared...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
