Has Anyone Heard Of This Rebate You Can Get Off HMRC

[Fourtuna]

One of my business associates told me yesterday that it is possible to get a pay back from HMRC if you are registered as self employed and not VAT registered yet. Does anyone know if this is true?

 

[k100danny]

A pay back of what exactly? I don't see what being vat registered would have to do with getting a rebate from HMRC as the only thing you would be paying is tax.

 

[Fourtuna]

He told me that HMRC are trying to entice people to sign up for 10% flat rate VAT. They apparently give you 40% of the VAT you would have paid if you was registered. Back dated for 4 years. Just sounds too good to be true to me,

 

[k100danny]

I know if you sign up for vat and flat rate vat at the same time you can claim back vat on certain things, I am pretty sure they won't give you back the vat you have paid over the last 4 years or i would have done this when i registered for flat rate vat and got about 25 grand back.

 

[Fourtuna]

25 Grand would be nice, If I get any more info straight from the source I will let you know. I would certainly do it myself as would many others I would suspect.

 

[Walkol]

He told me that HMRC are trying to entice people to sign up for 10% flat rate VAT. They apparently give you 40% of the VAT you would have paid if you was registered. Back dated for 4 years. Just sounds too good to be true to me,

Is it delivered by a unicorn by any chance?

 

[Fourtuna]

I don't know, I need to talk to him again and get to the bottom of it all and see if it is viable to do.

 

[Paul Kelly ICHYB]

When you called HMRC, what did they say?

 

[KM-Tiger]

Is it delivered by a unicorn by any chance?

Yes, mine was, but they only deliver on April 1st before 1200.

 

[Fourtuna]

I have not called them as it takes forever to actually speak to anyone in my experience. I am having a meeting with my associate tomorrow, so hopefully I will know the full picture then.

 

[David Griffiths]

I'd guess that this is based on backdating VAT registration for four years and applying for the flat rate scheme. However, it depends on you being able to invoice all of your customers over the last four years for VAT on what you've charged them. They would be quite within their rights to tell you to take a hike, even if they are VAT registered themselves. If they aren't VAT registered, I can't imagine the answer being longer than two words. And even if they don't pay the VAT you'd have to so you could easily end up out of pocket on the deal

You are then drawn into VAT administration going forward, charging VAT to all of your customers and making returns on time with penalties if you don't.

If you do get a VAT pay out, it's subject to Tax and NIC as well, so that's 29% of it back to HMRC in income tax

 

[Fourtuna]

I had a meeting with my business associate and now I know the full picture, it works for people like sales guys for instance that have been working for only 3 or 4 companies in the last few years. One of the guys that got registered for the flat rate scheme ended up with £6,000 paid back to him.

I think I will be giving it a try and see what I get back.