Hi
I have a client which looks like they may hit the top limit of £225k turnover this year for the flat rate scheme. Once this is reached do we have to leave the scheme immediatly or is there a period of grace? What if the following year income is under £225k?
Any help would be appreciated
Lisa
Lisa Coulson
Replies (3)
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leaving FRS
But, you can stay in the scheme if you think your turnover will go down below the limits in the next year.
Leaving the scheme
If you become ineligible, then if you account for VAT quarterly you need to leave the scheme at the end of the VAT period containing the anniversary of your start date or if accounting for VAT annually, the end of the month after the month containing your FRS anniversary, or the end of your current annual VAT period, whichever comes first.
Simon.
My recollection
Is that eligibility to remain in the scheme is reviewed on an annual basis (so if you breach the threshold you do not immediately have to leave).