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VAT flat rate scheme, when to leave the scheme?

Hi all,

I just wanted to double check my understanding of when a company should leave the flat rate scheme. I understand that it is when the turnover (including VAT) exceeds £230,000 in 12 months. My query is with regards to the period that counts as 12 months.

I believe that it was at any 12 month period from joining the scheme, i.e. on a rolling basis. However a colleague said they thought it was only at each anniversary of joining the flat rate scheme that you look back over the past 12 months.

Which is correct?

Thank you in advance for your help.

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VAT notice 733

 

3.5 What if my turnover rises once I have joined the scheme?

You may stay in the scheme provided your total income (including VAT) for the year just gone has not risen above £230,000. Make this check on each anniversary of your business joining the flat rate scheme. You must leave the scheme if your turnover increases so that there are grounds for believing that the total value of your income will rise above £230,000 in the next 30 days alone.

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