How often does revenue need to be tested under Regulation 55M(1)(b) of the Flat Rate Scheme?
Regulation 55M(1)(a) and (b) of Value Added Tax Regulations 1995 (Part VIIA Flat Rate Scheme for Small Businesses) (as amended) state that:
55M.—(1) Subject to paragraph (2) below, a flat-rate trader ceases to be eligible to be authorised to account for VAT in accordance with the scheme where—
(a) at any anniversary of his start date, the total value of his income in the period of one year then ending is more than £230,000,
(b) there are reasonable grounds to believe that the total value of his income in the period of 30 days then beginning will exceed £230,000,
It seems clear that Regulation 55M(1)(a) requires the revenue test to be applied once each year on the anniversary of a business’ start date. However, Regulation 55M(1)(b) refers to a period of 30 days “then beginning”.
Should this be interpreted to apply to a period of 30 days then beginning on the anniversary of start date, so the test is applied once per year, or is it required to apply this test every day, month, or quarter? If the latter, what is the correct frequency?