Flat Rate VAT and deadline for 1% reduction

**kal** · 30 January 2014, 16:29

Originally posted by garnet View Post

Hi all
Could you provide some insight in the following.
My LTD had the effective VAT and FRS starting date on 2/2/2013.
I have been paying FR VAT @ respective % minus 1% for the first year.
I have a VAT period ending 31 Jan 2014, so I will be paying VAT in February 2014 @ %-1.
The question is what about February (first month in the new VAT period). Do I pay at reduced FR VAT for February while March and April go @ full FR VAT?
Or all 3 months go with full FR VAT?
Or other?
Thanks

What does your accountant say?

**Clare@InTouch** · 30 January 2014, 16:35

Other - there's a cut off at the date that is a year from when you registered for VAT.

Discount in your first year of VAT registration

There's a one per cent reduction in the flat rate percentages for your first year of VAT registration. So if you are in your first year of VAT registration, you can reduce the flat rate percentage for your sector by one, until the day before the first anniversary of your VAT registration. This discount applies even if the flat rate percentage for your sector changes during your first year of registration.

HM Revenue & Customs: Flat Rate Scheme for VAT

**TheCyclingProgrammer** · 30 January 2014, 17:40

You need to apply the discount to invoices raised in the next VAT quarter up to the day before the anniversary of your registration and then apply the new rate to any other invoices in the VAT quarter.

**garnet** · 31 January 2014, 09:16

Originally posted by kal View Post

What does your accountant say?

What does yours say?
I dont buy this service from mine. This is no-brainer to do it myself (99.9% of the time).
Pretending to be smart as.s, but having your accountant do your VAT is a contradiction.

@other guys: Thanks, that is what I needed.

Flat Rate VAT and deadline for 1% reduction