Leaving VAT Flat Rate Scheme

Support
1

I am completing my VAT return tomorrow (Thursday) for qtr ended Jan 24. I left the Flat Rate scheme effective 31 October 2023 (but HMRC chose not to inform me until a couple of weeks ago and have offered me £50 after I ‘charged’ them a £100 penalty for tardiness but that’s another story).

After reading previous posts and knowledgebase, I changed my VAT settings and turned off Flat Rate scheme before making any accounting entries for the quarter. 31 Jan 2024 is also my year end.

Can you confirm that there are no year end implications of the change other than the previously recorded flat rate sales adjustments?

TIA

2

If the change date was in line with your VAT quarters (so the whole of the previous quarter was on FR and the whole current quarter was standard VAT), and you’re not also switching between cash and accrual accounting at the same time, then yes, it should just be a case of flipping the switch before you submit the first non-FR return.

3

Thank you!

kind regards
Pradeep

4

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