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?
- Paper 139 9
- Accounting Web - What is happening? 418 16
- Moneysoft - technical query 410 11
- Giving investment company to spouse 52 2
- Recommendations for in house accounts prep software? 89 2
- Late RTI submissions on change of accountants 244 5
- Xero Pain Points 321 14
- Tainted donation by company 169 2
- 2014/15 Tax calculation spread sheet 665 8
- HMRC incompetency 205 1
- Copies of every transaction can't be OK!! 632 10
- HMRC site down ? 267 5
- Tax Codes and VAT 222 3
- Renting home garage and outbuildings to Business 192 3
- The importance of Grammar 1,008 25
- VAT REGISTATIONS 237 5
- Why does Aweb always take the nuclear option … 2,906 65
- System selection 187 2
- is photo id necessary to set up a direct debit? 508 21
- Bookkeeping - Relevant Qualifications? 360 5
- Any knowledge of salesorder.com 361
- Chart of account segments; Balance sheet vs P&L 303
- HMRC RTI Filing Problem 290
- Goodwill and the Summer 2015 Budget 283
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 276
- Electric Car 232
- S222 Charge 204
- What is the best acounting software for online international retail business? 201
- Foreign Tax on Pensions 194
- Company Structure 181