Leaving the flat VAT rate scheme criteria

[GillsMan]

Turnover is normally on invoices raised whether paid or not. However for VAT box 6 it can be either invoices raised or money received. There's no declaration for the method chosen and the rules do not restrict switching method whenever it suits.

Ah, OK, thanks for the clarification!

[earningacrust]

When HMRC spot that your turnover has exceeded £230k based on your past VAT returns, you'll get a letter from them telling you that your Company needs to leave the flat rate scheme.

They usually keep you on the flat rate scheme until the end of your existing VAT period. Then you will need to revert to the standard scheme after this.

[malvolio]

More likely "no one here is troubled by a £230,000 turnover" which would seem to be a day rate of £970+ assuming 4 weeks holiday. There will be some on that, but they pay someone else to worry about the above.

Or two fee earners on £485? Or three on £323.33...?

[RockyBalboa]

When HMRC spot that your turnover has exceeded £230k based on your past VAT returns, you'll get a letter from them telling you that your Company needs to leave the flat rate scheme.

They usually keep you on the flat rate scheme until the end of your existing VAT period. Then you will need to revert to the standard scheme after this.

Or you can just write to them and state this is a one off due to X Y Z reason, as I did.. and as long as it's genuine (your next annual figure drops below the threshold), all is good.