VAT Flat Rate Scheme Threshold

[Entrepreneur88]

Hello,

I am a bit confused and would be grateful if you could help!

Regarding the VAT Flat Rate Scheme; on the Gov webpage, it says that;

''You can join the Flat Rate Scheme if you expect your VAT taxable turnover to be £150,000 or less''.

It also states that ''you must leave the scheme if your turnover in the last 12 months was more than £230,000 on the anniversary of joining''.

(1) if my turnover reaches £160 K after 11 months of joining the scheme, do I need to leave?

(2) if I don't reach £150k in the first 12 months, does this mean the leaving threshold is £230,000 afterwards?

For many, the above is clear, but not for me, sorry!

Many thanks in advance,

Adam

 

[Ziggy2024]

You're allowed to join the FRS if your turnover is £150k or less (with some exceptions). If you are in the scheme you assess your turnover on an annual basis, if you are under £230k on your anniversary of joining you can remain in the scheme.

1) No
2) Yes

To use FRS you must request to join, you can't just start using it. Same with leaving voluntarily, you must request a leaving date from HMRC .

 

[Entrepreneur88]

You're allowed to join the FRS if your turnover is £150k or less (with some exceptions). If you are in the scheme you assess your turnover on an annual basis, if you are under £230k on your anniversary of joining you can remain in the scheme.

1) No
2) Yes

To use FRS you must request to join, you can't just start using it. Same with leaving voluntarily, you must request a leaving date from HMRC .

Thank you very much