Flate Rate Scheme and late VAT Registration Query

Flate Rate Scheme and late VAT Registration Query

Didn't find your answer?

Still waiting further information from client before ascertaining length of overdue returns but at the moment its looking like 10 months.

I have seen past posts on this board confirming that you can operate the FRS from the date of registration (late) but when I look at the HMRC site things get a bit more vague (not much new there!).

One of the questions on their "wizard" is " Have you failed to submit a VAT return at anytime?" Answer no and you get offered FRS, answer yes and you don't. Obviously client has failed to submit at least 2 VAT returns, or am I not thinking on the correct wavelength? (again!)

If anyone could enlighten me on the current practice I'd be grateful.

Thanks

Replies (4)

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By thacca
05th Aug 2010 14:47

I have back dated FRS applications to date of registration when registering late on two occassions in  the past couple of years. HMRC never raised any objections.

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By bstock
05th Aug 2010 14:57

Sounds good so far...

Thanks for the quick response  thacca

Did you by any chance also get the 1% additional discount for the first 12 months?

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By hrbs.biz
25th Oct 2010 10:28

Late VAT registration penalty

Your client can get the 1% discount in the VAT return, but will have to notify the VAT office of the output tax due for the period between the date registration was required and the date the application was received so that HMRC can issue the late registration penalty.  The 1% discount cannot be deducted from the flat rate percentage when reporting this information.

 

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By bstock
25th Oct 2010 14:19

1% discount claimable from notification not registration date

Thanks but have since discovered that the 1% discount is only claimable on the VAT return from the date of acceptance onto the scheme till the first anniverary of registration.

ie: notified hmrc on 1 June that should have been registered on 1 January and applied to be on frs from 1st January. The additional discount is only claimable from 1 June to 31 December not for the whole year.

 

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