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How often can you change VAT scheme in a year?

How often can you change VAT scheme in a year?

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We prepared an annual VAT return to 30/9/13 for our client on the Flat Rate basis, and the client advised us to change to standard rate thereafter. We prepared the quarterly return to 31/12/13 on the standard basis, and now they have decided that they want to go back to flat rate, and return to standard rate when they commence a new contract outside the scope of VAT (which was supposed to commence in the quarter ended 31/12/13 hence the original instruction to change to standard rate).  Is it acceptable to swap between schemes in this way?

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By JCresswellTax
23rd Apr 2014 14:02

I believe

You have to stay off the flat rate scheme for 1 year before you can rejoin.

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Stepurhan
By stepurhan
23rd Apr 2014 14:24

Confirmed

You cannot rejoin within 12 months of leaving.

http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm#10

If they do rejoin after 12 months, they also need to remember that the 1% first year discount only applies to entirely new schemes, not just ones that have joined flat rate.

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