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?
- Taxfiler V's BTC 707 27
- Clearing payments on account/ Sage 50 50 4
- Incorporation - any tax advantage? 2,665 25
- Allowable expenditure when claiming wear & tear 137 6
- Recommendations for payroll/AE software? 289 7
- Audit procedures on a dormant company 52 1
- Sage reporting 71 3
- BTC Software 204 8
- Offshore company transferring assets to a UK individual. 219 7
- Expense receipt from previous quarter not included in VAT return 33 1
- Completing RP1 form in re Redundancy /Insolvency 208 7
- Halloween - do you celebrate it? 127 2
- CGT implications for gift of shares to connected person 187 8
- Directors loan accounts 184 5
- Can I zero rate the VAT? 194 4
- Data Protection and emailing documents 1,176 18
- New Practice 347 18
- Change of director first name on Annual Return 98 1
- CGT on second home? 111 3
- Myfirmsapp 705 17
- Nil Rate Band Trust - index linked debt by way of charge over property 1,011
- International interest certificate 591
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 518
- NOVA 474
- Bonus Bonds 358
- Insolvency and whistle blowing 338
- Transfer of funds into recently set up company 258
- Payment for Promotional Samples 232
- TPR imposes first penalty notice fines 225
- Quickbooks 2015 154