Got VAT number but Flat Rate Scheme delayed - what do I do?

[Lewis]

I put my applicaton for the FRS and VAT in the same envelope. The VAT application has been processed but the FRS application seems to have been lost. So I have re-applied.

Now I am due to pay VAT at the end August and the FRS application may not been processed by then. I have just been paid the last 3 months VAT from the agency.

If the FRS application is not processed by the time the VAT is due I must obviously pay normal VAT. What then happens when the FRS application is accepted (the application is from the same start date as the VAT), can I make an adjustment to my second VAT return so I have effectively been on flat rate for the whole time?

[Darren@UptonAccountants]

Frs

The flat rate scheme applications are turned around very quickly, seem to be 5-7 working days at the moment....so you shouldn't have any problem with this at all.

[Anderson]

I was in a similar situation.
My VAT period was up to end of June, I had VAT registration but had not received conformation of FRS.
My accountant rang the VAT office and was told that they wouldn't be able to process my FRS until end of July, which would probably be too late.

I personally rang the VAT office (took a few calls and a lot of holding to get through) and when I was eventually put through to the FRS department the nice lady told me ''That's fine Mr. Anderson, as your period was to the end of June I'll do it right now for you, don't worry''

Then I received the conformation letter in the post a week or so later.

[TheFaQQer]

FRS needs to be applied at the start of a VAT trading quarter - there is no way to back-date it.

Depending on what they decide as your FRS registration date, you may have to suck it up and pay 17.5% on the last quarter when you weren't FRS registered.

[Lewis]

The flat rate scheme applications are turned around very quickly, seem to be 5-7 working days at the moment....so you shouldn't have any problem with this at all.

I finally got through to the FRS office. They say they are taking about 4 weeks to process applications at the moment. My application has already been in over 2 weeks so hopefully it will be processed before end Aug which is when I have to pay VAT by. He did say an adjustment could be made to my next VAT return if the application is not processed in time.

[Lewis]

I was in a similar situation.
My VAT period was up to end of June, I had VAT registration but had not received conformation of FRS.
My accountant rang the VAT office and was told that they wouldn't be able to process my FRS until end of July, which would probably be too late.

I personally rang the VAT office (took a few calls and a lot of holding to get through) and when I was eventually put through to the FRS department the nice lady told me ''That's fine Mr. Anderson, as your period was to the end of June I'll do it right now for you, don't worry''

Then I received the conformation letter in the post a week or so later.

So was it processd in June or July? Does it have to be processed by the end of the VAT quarter or just before the VAT is due?

[VectraMan]

I finally got through to the FRS office. They say they are taking about 4 weeks to process applications at the moment.

Mine's been in for 4 weeks. No reply yet.

[Anderson]

Lewis

They only received my application for FRS on June 14th, but the end of my VAT quarter was June 30th.
I rang them on July 4th and received verbal confirmation that they would process my FRS application imediately, to enable me to pay VAT under the FRS for quarter ending June 30th.

I have submitted my VAT return online, which allows me until August 10th complete payment to them.

Sounds like you should be ok.

[Lewis]

Lewis

They only received my application for FRS on June 14th, but the end of my VAT quarter was June 30th.
I rang them on July 4th and received verbal confirmation that they would process my FRS application imediately, to enable me to pay VAT under the FRS for quarter ending June 30th.

I have submitted my VAT return online, which allows me until August 10th complete payment to them.

Sounds like you should be ok.

Great Thanks for the reply, much appreciated.