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VAT flat rate

Can you use 1% reduction if previously registered?

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I have a client who deregistered for VAT during the pandemic as trade dropped so low.

Now business has picked up again they have registered for VAT and applied to use flat rate scheme.

My question is can we apply the 1% reduction when they have been registered for VAT previously?

Thank you.

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By bernard michael
25th Jan 2022 09:22


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By Jason Croke
25th Jan 2022 09:58

It's a new VAT registration, new VAT number, can't see why not.

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By Truthsayer
25th Jan 2022 11:53

I'm not sure you can. The guidance simply says 'if you’re in your first year of VAT registration you get a 1% reduction in flat rate percentage'. It is silent on reregistration, but read simply, that guidance does not allow for it. To get a proper answer one would have to look at the legislation.

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