Trader has registered for VAT and applied for Flat Rate Scheme with effect from EDR. Trader went over threshold in Jan 09 so EDR is 1 Mar 09. Application was late, but FRS was accepted by HMRC wef EDR.
However, a telephone call from HMRC to this office pronounced that the 1% discount was not available because of the late notification.
I can't find reference to this in VAT733, nor can I untangle SI 1995/2518 reg 55JB which, apparently, is the legal basis for the discount and would I assume contain the basis for denial.
Anyone come across this, and is it actually valid for HMRC to deny this discount?