Getting the numbers right

As the panellists often say on the popular BBC programme Dragon’s Den it is all about the numbers. That is definitely the case in the VAT world and here are three tales about things that went wrong with the numbers: a policy mistake by HMRC with the large payers VAT scheme; a problem with flat rate scheme calculations under making tax digital (MTD); and the turnover to include and exclude with the VAT registration threshold.

Large payers scheme

From a cash flow perspective it is best for a business to stay out of the large payers scheme if possible because it involves making monthly payments on account with a balancing payment made on the due date of the return. The payments on account are subject to the default surcharge regime so must always be made on time.

A business must join the scheme...