well the tories are after me again…
I’ve decided to get off the flat rate scheme after changes that are to be introduced in the next tax year. My VAT period ends on January 31 and the next one ends on April. Am wondering after which one is best to get off the VAT scheme? (accounting q.)
Does Quickfile handle a variation on flat rate mid way through a quarter? (howto q.)
On the flat rate scheme invoices are lodged with standard VAT (20%) and only when filing the return is the VAT turnover calculated and the flat rate % applied to that total. This should therefore make transition relatively simple, although usually you would not change mid quarter, but rather at the beginning of a new quarter.
At the beginning of the new quarter deselect the Flat Rate checkbox in your VAT settings, this will then allow you to record VAT to purchases. The next VAT return you prepare will be on calculated using regular cash/accrual accounting (whichever it was previously).
It’s best to check your backing report before submitting your first return off the FR scheme. But it should be relatively painless.
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