Applying For FRS

[scaramanga]

Quick question on FRS application. Has anyone successfully manipulated the date for FRS to start?

Got my VAT no last week and received a partially completed FRS application from my acountant today. They have put the date of VAT registration as the start date, but I'm wondering of I could put the date of my first invoice to a client. That way I could claim a few hundred quid back on expenses incurred before I invoiced anyone.

HMRC guidance on completing the form says: "When considering an earlier or later start date, we will consider all the facts including the timing of your application and your compliance record. We will not normally allow you to go back and use the scheme for periods for which you have already calculated your VAT liability."

Obviously I am trying to fudge it so I can get the max back, but at the end of the day if the VAT application process was as efficient as it should be I wouldn't have had to back date anything and when forming my business I knew the bulk of costs would come in set-up (computer equipment, company formation etc.). So this is the way I would have done it anyway.

Just wondered if anyone had achieved any success with this. If not I may as well stick with from VAT registration because it probably has more chance of being accepted, despite losing out on a few quid.

TIA for any replies.

[TheFaQQer]

You can't register for FRS before your VAT registration date. You might be able to go back to that first registration date, but the rules say that the date for FRS registration will be the start of your next VAT period.

[scaramanga]

You can't register for FRS before your VAT registration date. You might be able to go back to that first registration date, but the rules say that the date for FRS registration will be the start of your next VAT period.

The VAT certificate shows registration commenced in July but I'd like to join FRS from when I sent out my first invoice in September. My point being that's what I would have done had I received the registration paperwork in a timely fashion. Although I suspect arguing that point may be a futile exercise & putting the registration date might be more likely to be accepted.

Thanks FaQQer.

[ladymuck]

When I sorted mine out last year, it was dated effective 19 Sept but a quick phone call got it put back to 1 Sept. I didn't need to go back any further though and having finished my previous contract and had my usual August off there wasn't any prior invoicing to be concerned about.

[TheFaQQer]

The VAT certificate shows registration commenced in July but I'd like to join FRS from when I sent out my first invoice in September. My point being that's what I would have done had I received the registration paperwork in a timely fashion. Although I suspect arguing that point may be a futile exercise & putting the registration date might be more likely to be accepted.

Thanks FaQQer.

Ah, now I see.

Give them a ring and see what they say about the registration - I did when I did mine, and they put it back to the start of the VAT period. If you are lucky, they will do it, if not then you'll need to start FRS next VAT period.

You want it as early as possible, as you only get the 1% discount during your first year of VAT registration, not FRS registration.