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Flat rate scheme and belated registration

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    Flat rate scheme and belated registration

    Hi, I'm new here and have difficult issue.
    November 2011 - this is a date when my turnover has gone above VAT threshold. i am sole trader. Now, i would like to register to flat rate scheme.

    There is other problem because first of all i sent email to HMRC and ask about exempt from VAT, because my turnover will be lower in next 12 months.

    HMRC replied:
    "Please refer to public notice 700/1 Should I be registered for VAT section 2.7 this explains what conditions would allow your company not to be liable to register for VAT if evidence can be provided that your taxable supplies would not reach the threshold within the next 12 months.
    I have forwarded your request to the registration office in Wolverhampton for their perusal, they will write to you with their decision. Should you wish to contact them their address details are:
    Wolverhampton Registration Unit
    Deansgate
    62 70 Tettenhall Road
    Wolverhampton
    WV1 4TZ"

    But now i change my mind and finally would like to be registered to flat rate scheme.

    So, i have to wait for decision and then ask hmrc about register to flat rate scheme.
    Do you know what is a propability of refusal (because of belated registration) ?

    Thanks in advance.

    #2
    But you haven't charged any VAT in past have you?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      No, I haven't

      Comment


        #4
        You can't back date registration but provided you don't exceed the upper limit, as far as I know HMRC can't stop you registering for flat rate.

        You need to think about it though - if you spend a lot on stuff that attracts VAT, the flat rate scheme could be a bad deal.

        Comment


          #5
          Should be no problem

          Firstly I'd say chat to your accountant who should have some advice. They should know your circumstances and deal with this for you.

          I believe HMRC would prefer that you are VAT registered. That way they know they're getting their hands on some taxes!

          Once your VAT reg. has come through, simply apply for Flat Rate VAT (as long as your turnover does not exceed £150k), they're unlikely to take much action on their side with regard to your email to them.

          Job done.

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