Leaving the FRS
Hi
You are formally required to write to HMRC to notify them that you are leaving the scheme. They will normally write back to you to confirm your leaving date. If you stop using the scheme in the middle of a VAT period, you will need to split your calculations into two to cover FRS and Standard Scheme, the figures are added together for your vat return.
Also, if you used the cash-based turnover method when under the Flat Rate Scheme, you will need to switch to invoice basis on your final Flat Rate Scheme VAT return and include all your supplies invoiced where the payment is not yet received, unless you switch to the cash accounting immediately after you leave the flat rate scheme (cash accounting is separate from the Flat Rate cash based method used for your vat calculations specifically).
In addition, if you receive payments before 1 April 2017 that relates to services after this date, you will need to apportion the sales figures to be included into the relevant VAT return period.
I hope this helps.
Originally posted by TheCyclingProgrammer
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You are formally required to write to HMRC to notify them that you are leaving the scheme. They will normally write back to you to confirm your leaving date. If you stop using the scheme in the middle of a VAT period, you will need to split your calculations into two to cover FRS and Standard Scheme, the figures are added together for your vat return.
Also, if you used the cash-based turnover method when under the Flat Rate Scheme, you will need to switch to invoice basis on your final Flat Rate Scheme VAT return and include all your supplies invoiced where the payment is not yet received, unless you switch to the cash accounting immediately after you leave the flat rate scheme (cash accounting is separate from the Flat Rate cash based method used for your vat calculations specifically).
In addition, if you receive payments before 1 April 2017 that relates to services after this date, you will need to apportion the sales figures to be included into the relevant VAT return period.
I hope this helps.
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