I applied to change a VAT registered client to the Flat Rate Scheme. The application has been accepted but HMRC have allowed the scheme to be backdated to July last year. I expected this to be applied from the next VAT period.
What do I do about the periods already submitted. Can I make an adjustment to the next return basing the figures on the flate rate from the date HMRC have given. What about the change in the VAT rate?
Any advice would be appreciated.
Replies (2)
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They did that to me too
I just called them and asked for the effective date to be changed to the start of the next VAT period to be completed.
From now on I will be specifying the start date in the application.
Back-dated Flat Rate Scheme
It is unusual for HMRC to allow the Flat Rate Scheme to be back-dated. You should receive a certificate from them, confirming membership of the scheme, and showing the effective date.
If the date is correct, you can re-calculate the previous VAT Returns. An adjustment up to £10,000 can be made on a current Return.