When do I have to leave the Flat Rate Scheme?

When do I have to leave the Flat Rate Scheme?

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I have been on the Flat Rate VAT Scheme for a couple of years. My anniversary date i.e. the day in which I first went on the scheme is 1st of July.

From 1st of July 2014 to 30th of June 2015 I have gone over the £230k turnover threshold for staying on the scheme. I submitted my quarterly VAT return for 1st of April 2015 to 30th of June 2015 in mid-July but it's now a month later and not heard anything from the HMRC about having to leave the scheme.

So my question is:

Based on the above am I supposed to leave the scheme as of the 1st of October 2015 (i.e. the period following the period that contains my anniversary date of July 2015) regardless of not hearing anything from the HMRC as yet?

Or is it a case of when the HMRC receive my upcoming VAT return from 1st of July 2015 to 30th of September 2015, they will then send me a letter telling me I need to leave the scheme as of 1st of January 2016?

Many Thanks

Replies (1)

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By Charlie Carne
10th Aug 2015 15:29

Per HMRC website

HMRC's notes at www.gov.uk/vat-flat-rate-scheme/eligibility state:

"You must leave the scheme if:

you’re no longer eligible to be in iton the anniversary of joining, your turnover in the last 12 months was more than £230,000 (including VAT) - or you expect it to be in the next 12 monthsyou expect your total income in the next 30 days alone to be more than £230,000 (including VAT)"

How to leave

"You can leave the scheme at anytime, but you must leave if you’re no longer eligible to be in it. To leave, write to HMRC and they will confirm when you can leave. You must wait 12 months before you can rejoin the scheme.

HM Revenue and Customs
Imperial House
77 Victoria Street
Grimsby
Lincolnshire
DN31 1DB"

It doesn't sound like you have written to them, so they won't reply. Filing the return is not the same as writing to them, so I suggest that you do as they request on their web site.

Thanks (2)