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A VAT-registered taxpayer realises the flat rate scheme would have been beneficial and wants to register on a retrospective basis
My client is a limited company that has used the flat rate scheme to calculate its VAT liability since commencing in business about five years ago.
At a recent compliance visit by HMRC it came to light that the business had been erroneously calculating the VAT liability based on its net of VAT rather than gross turnover.
The business now has several thousand pounds of VAT arrears to pay and is not in a position to settle this. I have reworked the figures and it appears that a substantially lower liability would have arisen if the business had withdrawn from the flat rate scheme some years ago.
Do readers think it likely that HMRC would allow a retrospective withdrawal from the scheme?
The company has no assets to speak of and an alternative might be for it to cease trading and for the director/shareholders to simply commence a new...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
