Hello all.....first time post for this ID....but i was registered some years ago! Anyway onto my qn. I've finally managed to get registered for VAT (i've been trying since April 07) and I'm now going to re-bill for the VAT from those years. No issue with that....but the qn is can I then pay back to HMRC via the flat rate for those years? My effective date on the VAT form is April 07....
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bump any ideas guys? -
HMRC probably won't object if you charge VAT and pay the tax that you've collected to them. You could simply put the whole amount on the first return, there's no way they can know how your business works.
The only drawback I can think of is that one massive return followed by loads of ordinary ones might prompt them to do an inspection (which is much less stressful than it sounds) and at that you can simply tell the inspector what you've done.
Alternatively ring the HMRC helpline and ask their advice, they've probably encountered this before.Comment
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How would the 1% discount for the first year on the flat rate scheme be applied?
I would agree that a phonecall to the VAT helpline would be the best way to sort this scenario out.Comment
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I thought it was illegal to bill unless you have a VAT registration number : and they only apply from a certain date?
What does your accountant say?Comment
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It is OK to send through the VAT invoices later once registered, and that is what the OP is saying that they are going to do.Originally posted by BrilloPad View Post
One thought that did just strike me though is that to go on to the FRS a separate application must be sent to HMRC. I am not going to dig out my old paperwork now but I am sure that HMRC confirm the start date when the FRS applies and the OP should look at that.
EDIT: HMRC wrote a separate letter to confirm acceptance onto the FRS giving a specific start date (which was the same as the VAT registration start date). I didn't have to worry about back-dating VAT invoices into that period so I can't comment on that side of things.Last edited by sweetandsour; 8 June 2009, 07:18. Reason: It seems that I do have time to dig through my old paperwork after all.Comment
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Originally posted by sweetandsour View Post
Thats right.....thats where i'm at now...just trying to sort out the FRS activation.....then hopefully i should be able to bill for the full amount and pay HMRC the FRS amount....
I've already been through the HMRC investigation....that ended up the best way to finally get registered (i had actually sent in 3 or 4 apllication since starting the business)
I just wondered if anyone else had been in this somewhat strange situation... will update you all once i get a confirmation from HMRC.Comment
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The FRS does not change the amount of VAT that you charge the client, but I can appreciate that the outstanding amount could be quite large so you want to be sure that you are on the FRS before you have to account for the VAT to HMRC.Originally posted by Underscore Pt2 View Post
That raises another complication - do you invoice VAT at 17.5% for the invoices that are dated before 1st December 2008?
I would be interested to know the answer.Comment
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Yep - invoicing 17.5 for prior to Dec 08, then 15% for after that. Then pay HMRC 11% for first year then 12 for the rest...Comment
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Its only gone and worked! Invoiced agency for last two years VAT.....Monies received. FRS is registered from the date in 2007. Have agreed payment with the lovely VAT man....so i'm left with almost 8k of cash that i wasn't expecting. Its not all doom and gloom chaps!Comment
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