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?
- private to company car? 121 3
- Does Freeholder have to be director of our RTM Company? 199 13
- How much to charge for Ltd company accounts ? 425 6
- Buy to let allowable interest 72 2
- We accountants are not the only ones!! 70 1
- Partner with an IVA 135 5
- HMRC Penalties - are they enforceable? 893 33
- Your fondest calculator memories 526 26
- Goodwill Valuation Prior to April 2002, with the intention of selling on due to personal changes 401 11
- Has been asked before but help needed 217 7
- Anyone having problems with IRIS OpenSpace? 204 6
- Is a Mercedes Vito a van for tax purposes? 296 4
- Can't understand my own electricity / gas bills 324 13
- Consequential loss claim 63 1
- Does anyone do payrolling of benefits? 129 1
- Sub-contractor provided with a vehicle 237 8
- Sale of an investment between group companies 107 4
- I hate HMRC's voice recognition system - The Inept Interrogator 402 12
- RTI - EPS - ??? 274 4
- That old chestnut 610 9
- DTR : TIOPA 2010 Section 42 449
- CTA study material 412
- Sect 102 TMA 1970 299
- Sage Forecasting - Print filename 274
- Pre incorp expenses 265
- Relief on French Tax Deposit? 234
- Anyone have clients that use Pay4Later to offer customers credit? 228
- Slight twist on employment related securities 203
- How to claim additional losses after mistake in CT return 176
- What is the tax position if I am working overseas but via a UK agency? 174