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?
- Limited Company - Personal Bank Account 3,164 68
- 2013/14 failure to submit end of year submission 257 11
- Gift of property & improvements 91 2
- Error in past Corporate tax return 321 5
- VAT Invoice 99 4
- Company overdue but wants to be struck off 785 32
- IHT and Swiss Property 109 1
- Sale of house with planning permission - tax free? 190 3
- Flat rate Vat Scheme & Vat on wholesale production of Cakes and other deserts 147 7
- General tax book with planning 119 1
- Vat code for journal entries of director's expenses 130 2
- Claiming VAT and missing receipts 425 10
- HMRC overreaching its powers -again against a small surveying firm? 351 8
- Help with tax codes on Sage 239 1
- Letting relief on property transferred to a spouse 175 6
- VAT code for invoice from not VAT registered company 255 4
- Accounting for a finance lease 157 4
- SA302's anyone?? 530 16
- A change from the old Q v NQ debate 1,639 41
- Renting for military reasons 186 2
- Skandia using wrong address 1,617
- Nil Rate Band Trust - index linked debt by way of charge over property 898
- International interest certificate 509
- NOVA 367
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 289
- Management expenses for investment company 262
- Bonus Bonds 260
- Entertainer withholding tax in Australia 171
- tax on apprenticeship income 169
- P11D benefit received by widow 148