Readers' forum: Happy anniversary

07 May 2019

Issue: 4694 / Categories: Forum & Feedback

When should use of the VAT flat rate scheme come to an end?

My client joined the VAT flat rate scheme from 1 March 2017. When she carried out the compulsory turnover check for the year ended 28 February 2019 she found that her total turnover (including VAT) exceeded £230 000. She therefore wrote to HMRC advising that she must leave the scheme.

HMRC has just replied saying: ‘I am writing to confirm that you have been withdrawn from the scheme with effect from 28 February 2019 … You will need to follow the normal VAT rules from the date of your removal…’

This seems to imply that she should start using normal VAT accounting from 1 March 2019; in other words for her current March to May 2019 VAT period. However my understanding from reading the regulations and Neil Warren’s article ‘24 hours’ (see Taxation 15 May 2014 page 11) is that a legislative oddity means that she can use the...

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