A new client has joined us. He needs to get vat registered because the t/o is likely to exceed the registration threshold in the next few months. We will be applying for flat rate annual accounting scheme. The reason for applying for this scheme is of course, possible reduction in admin and other costs of completing otherwise quarterly vat returns as the accounts can be finalized at the same time that the vat return is completed. We are hoping this would reduce the time significantly.
This is the first time we are applying for annual scheme. Therefore, not sure whether the benefits we are envisaging for the client & us would be real, i.e., time and cost saving; how much reduction in fee would be appropriate due to time saving?
We would like to hear from anybody who has implemented this scheme for their clients and what are the pros and cons for the client and to us as accountants? Thanks for any comments.
Replies (3)
Please login or register to join the discussion.
If possible go for FY
Where possible I find it beneficial for the VAT return year to be the same as the accounting year (FY). Then two advantages accrue:
# Get the accounts prepared at same time as VAT return very soon after FYE
# Reduces risk of errors on VAT returns as VAT returns based upon reconciled accounts