I have a client who has had to leave the flat rate scheme at end of Feb due to exceeding the 230K turnover threshold.
VAT returns have been prepared under the flat rate cash based method and client is switching to cash accounting.
Bookkeeping is done on Sage 50, have followed the instructions provided by Sage to switch schemes expecting to see that all receipts for invoices issued prior to 1 March should be at the flat rate, and any subsequent invoices received at 20%. However everything is showing as 20% of cash received regardless of invoice date.
Unless I've got completely the wrong end of the stick this is incorrect.
Para 9.6 of VAT Notice 733 states - "The only exception to this is if you cease to use the FRS, but immediately start to use the cash accounting scheme described in VAT Notice 731 Cash accounting. Any business that leaves the Flat Rate Scheme and immediately starts to use the Cash Accounting Scheme should apply the appropriate flat rate percentage to any supplies made while part of the Flat Rate Scheme when payment for those supplies is received."
I've had a long day, can someone just confirm I'm not going slightly mad and that I need to put a call into Sage in the morning.