VAT windfalls are not common, but the First-tier Tribunal found in favour of the taxpayer in two recent cases
KEY POINTS
- Have some accepted flat rate scheme rules been overturned?
- Don’t forget to record the annual VAT saving.
- It may be possible to join the flat rate scheme retrospectively.
- Backdating of a changed flat rate may also be possible.
- Always check that HMRC have complied with their own guidance.
There are two main rules with the flat rate scheme (FRS) that have been commonly accepted for many years: it is not possible to join the scheme retrospectively if a VAT return has already been submitted for the period in question; and the flat rate category cannot be changed retrospectively if the initial choice was reasonable.
But two recent First-tier Tribunal cases have surprised us all by ruling against these principles – so is there now a window of...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.