VAT Flate Rate Scheme

Have a contractor client who was on the flat rate scheme for VAT.

One of those clients who does things without asking and we rarely hear from him other then for the year end accounts prep.

On preparing the accounts, it appeared that for a large part of the year he was working for (and billing) a US company, zero rating the invoices.  He had been sending in nil VAT returns.

The VAT owed is around 10k.

Informed client that he had been declaring the wrong amounts on his VAT return and that he was still liable to the FRS % on his zero rated invoices, despite the fact that he was not actually charging VAT.

Client informed that he had requested with HMRC to come off the FRS as soon as he started working for the US co.

When asked for HMRC confirmation he said that he can't find it but 'thinks' he received it.

I am not convinced that the client did inform HMRC and my question is if he didn't can this be done retrospectively or will he be liable for the full amount of VAT owed under the FRS? 

Advice appreciated.

 

 

 

 

 

 

Comments
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Maybe not a problem?

MarionMorrison |
MarionMorrison's picture

Zero rated is not exempt, but the website suggests he is OK - or

mikewhit |

Inclined to agree with Marion

andypartridge |

See here

zebaa |

Ahh.. too late

zebaa |

.

Jason Dormer |
Jason Dormer's picture

Place of Supply

paulwakefield1 |