I have a one-man Ltd company client who was VAT registered (flat rate scheme), then, quite correctly, deregistered as he took a permanent job. That job didn't work out and so he's resigned after six months and is re-starting his own business, and has re-registered for VAT and rejoined the flat rate scheme at the same time. He now wants to reduce his flat rate percentage for another year since this is now is first year of his (second time) VAT registration. He has very clearly NOT gone through de-registration and re-registration deliberately to benefit in this way, so as far as I can see he's not breaking any rules? Any thoughts on whether this is an acceptable thing to do?
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Gap
How long ws the gap between de-registering and re-registering?
On leaving the flat rate scheme, you have to wait twelve months before you can rejoin. I may be wrong, but I can't see anything that says that de-registering and re-registering changes this.
That was my thought too
How long ws the gap between de-registering and re-registering?
On leaving the flat rate scheme, you have to wait twelve months before you can rejoin. I may be wrong, but I can't see anything that says that de-registering and re-registering changes this.
Presumably you would be stopped from joining the FRS (though once you could again you would get your 1% again), though clearly this hasn't happened!
Six months. You make an interesting point, but hmrc have accepted the flat rate scheme application.....