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?
- Liquidation caught by transactions in securities? 14 1
- VAT - How hard is it? 831 31
- Class of Shares 114 1
- Moneysoft - technical query 563 18
- IRIS OpenSpace won't upload CT600 properly 290 7
- The importance of Grammar 1,462 48
- Freelance/Employee 154 6
- Cut-off accounting question 52 1
- What would you do? 448 3
- Complicated situation with very old balances from previous accountant 337 7
- tax saving on card points 288 8
- "cycle to work" and self-employment benefit? 339 8
- Tax Implications on Child Benefits 263 2
- Profit split from an investment property 238 7
- VAT & Offshore Companies 259 7
- VAT and customer entertaining 264 4
- Hold on a minute (pun intended) 1,340 11
- Xero Pain Points 580 18
- supply teachers working through Ltd co 212 2
- Best way to draw a salary? 736 12
- Any knowledge of salesorder.com 377
- Chart of account segments; Balance sheet vs P&L 335
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 315
- Goodwill and the Summer 2015 Budget 302
- Electric Car 254
- S222 Charge 220
- What is the best acounting software for online international retail business? 216
- Foreign Tax on Pensions 203
- Company Structure 197
- Does anyone know the name and postal address of HMRC's Data controller? 189