Moving from standard to flat rate scheme for VAT

Moving from standard to flat rate scheme for VAT

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Just looking for clarification on the VAT quarter covering Feb/Mar/Apr 2013.

The client is moving to flat rate from 1 Mar 2013 so Feb income is on the normal VAT scheme, and Mar/Apr income will be flat rate.

For cash accounting, do I treat the Feb invs received in Mar under the standard scheme or under flat rate?

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By User deleted
23rd May 2013 08:24

Not quite correct, Basil

In fact, you're quite wrong.

Although technically one has to leave Cash Accounting when joining FRS, to all intents and purposes you carry on as before as far as outputs are concerned if you adopt the cash-based turnover method - there is no need to account for VAT on debtors etc when changing Schemes.

To the OP - have HMRC accepted entry to the Scheme from 1 March 2013? HMRC prefer the start of a return period.

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By User deleted
23rd May 2013 11:40

Not so much a question of doubt

I'm well aware that FRS can commence on any date - I was simply pointing out HMRC's preference. The OP said that the client is moving to FRS from 1 March 13, not has moved to FRS. To avoid having to make assumptions, I prefer to have the facts fully laid out in front of me.

As for HMRC's guidance, have a look here. In view of that guidance, I don't see any need to answer your subsequent query.

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By non-sequitor
23rd May 2013 12:43

Thanks for the input.

Yes, HMRC has given approval for a mid-quarter change, as of 1 Mar 2013 for the quarter ended 30 Apr 2013 (it was done this way to dovetail with the accounting year end).

@ BKD, that link does indeed answer the question so thanks for that.

 

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