Fwiw, when I switched to normal VAT, my understanding was also that it's a notification to HMRC. I did so by email and cc'd my accountant who replied that it should have been a request. <shrug>
In any case, no response from HMRC, so I wrote a letter again notifying them along with the effective date, and sent it registered delivery, which did solicit a written acknowledgment of the change.
They screwed up the changeover date by a day, I mean how hard can it be when you have it written in front of you and it coincides with end/start of VAT periods. I just ignored this for the sake of accounting convenience.
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Reply to: From flat rate VAT to regular VAT
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Previously on "From flat rate VAT to regular VAT"
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Originally posted by Craig@Clarity View PostJust be aware that if HMRC haven't processed the application and you prepare the VAT return differently to the scheme they have on their system, their computer can say no and kick out a flag
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Just be aware that if HMRC haven't processed the application and you prepare the VAT return differently to the scheme they have on their system, their computer can say no and kick out a flag
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Thanks all. I was pointed to the same document (notice 733). So it seems I am OK to stop using FRS.
There was a full new VAT period after the period in which I said I was leaving the scheme, so I should be on a clean slate.
Since I now work inside IR35 on my main contract I pay not VAT. However my second contract (20 hours per month) with a party outside UK is still running. Should I expect any problems when I reclaim VAT on receipts related to this activity? In effect I will get money back - any VAT inspection maybe.
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Originally posted by ladymuck View PostSection 12 of this guide states that you must not account for VAT using the scheme after your leaving date, even if you've not heard back from HMRC.
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Section 12 of this guide states that you must not account for VAT using the scheme after your leaving date, even if you've not heard back from HMRC.
https://www.gov.uk/government/public...sses#section12
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When I switched, I just informed HMRC of the effective date (aligned to my reporting quarters) and then got on with it. I never received any form of acknowledgement. This was several years ago, when the changes to the FRV scheme were coming into force that made it a less attractive proposition.
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Originally posted by gisp View PostI was under the impression I have to wait for their notification of my FRVAT scheme's final date. However the guy was sure I just need to notify them I am leaving the scheme.
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I was under the impression I have to wait for their notification of my FRVAT scheme's final date. However the guy was sure I just need to notify them I am leaving the scheme.
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Originally posted by Lance View Post
Question for Craig@Clarity though. If the OP exceeds £150k turnover would he still have to wait for HMRC response before changing?
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Originally posted by gisp View PostHi all,
I sent a letter by post to HMRC notifying them my LTD wants to leave the FRVAT scheme. This was in May 2021.
Havent heard from them since. I called the VAT help line and I was told my letter is received but is still in the backlog.
However the HMRC bloke was quite sure my LTD can start charging normal VAT and reclaiming VAT without a confirmation from them.
Do you know if this the case?
FRS is only about how much you pay HMRC in your return.
Question for Craig@Clarity though. If the OP exceeds £150k turnover would he still have to wait for HMRC response before changing?
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Originally posted by gisp View PostHi all,
I sent a letter by post to HMRC notifying them my LTD wants to leave the FRVAT scheme. This was in May 2021.
Havent heard from them since. I called the VAT help line and I was told my letter is received but is still in the backlog.
However the HMRC bloke was quite sure my LTD can start charging normal VAT and reclaiming VAT without a confirmation from them.
Do you know if this the case?
Leave a comment:
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From flat rate VAT to regular VAT
Hi all,
I sent a letter by post to HMRC notifying them my LTD wants to leave the FRVAT scheme. This was in May 2021.
Havent heard from them since. I called the VAT help line and I was told my letter is received but is still in the backlog.
However the HMRC bloke was quite sure my LTD can start charging normal VAT and reclaiming VAT without a confirmation from them.
Do you know if this the case?Tags: None
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