From Standard to Flat Rate VAT

[Vanio]

Hi, quite new to this forum

I am currently on the standard VAT rate and my quarter ends April. I am wondering
if I can change to flat rate before the quarter ends and pay the flat rate instead of standard.

p.s - April will be my first vat quarter as I have registered back in February.

What else do I need to know ?

 

[Scalloway]

As far as I know you can join at any time. You just work out VAT as before up to the date of joining, then account for FRS VAT on sales thereafter.

 

[TheCyclingProgrammer]

Why do you want to join the FRS? Have you worked out what your flat-rate percentage would be for your business (considering the limited cost trader rules)? How does that compare with the input VAT you currently reclaim each year on your VAT return?

 

[Vanio]

It should be 7.5% from what my accountant told me today. Looks like I be able to save around £600-800 monthly if I go to the FRS. Still considering.

 

[JCresswellTax]

It should be 7.5% from what my accountant told me today. Looks like I be able to save around £600-800 monthly if I go to the FRS. Still considering.

What type of work do you do and how much do you spend on goods?

 

[Karimbo]

I did this, toggle the vat scheme from standard to FRS and saw that I would save £600+ under FRS, I immediately sent the FRS application, chased them up a few times and got them to push my application through over the phone and as soon as I got the go ahead I posted the VAT return under FRS.

I applied and joined the FRS after the vat quarter end where I was in the standard scheme. On the application I wrote down the intended transition date to be from the start of the previous VAT quarter. You can back date your transition as long as the VAT return hasn't been submitted IIRC.

Tax rules change all the time, this is just my opinion based on my experience over a year ago, YMMV

 

[Vanio]

Did you do this via the FORM from HMRC ?