Changing vat schemes

Flat rate to retail

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A client who buys and sells goods has changed from the flat rate scheme to the Apportionment 1 retail scheme. He has an amount of stock of say £10,000 inc vat at the date of leaving the flat rate. Of this £10,000 say £7,500 is inc standard rate vat and the remaining £2,500 are zero rate purchases. He is about to complete first vat return under retail scheme and not sure how to treat this stock brought forward which he has sold in the first quarter of the new scheme. Does he pro rata between standard and zero rate and add to other purchases in the first quarter in order to work out the appropriate percentage to apply to sales or is the blf stock treated in some other way?

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