Has anyone here been on the FRS but then ended up breaching the annual turnover limit of £150k?
I believed you would have to drop out of the scheme but according to HMRC's website (extract below) you can remain in it until your turnover reaches £225k.
Also awaiting response from my accountant.
From HRMC website:-
Who can join the Flat Rate Scheme
You can join the Flat Rate Scheme for VAT and so pay VAT as a flat rate percentage of your turnover if:
•Your estimated VAT taxable turnover - excluding VAT - in the next year will be £150,000 or less. Your VAT taxable turnover is the total of everything that you sell during the year that is liable for VAT. It includes standard, reduced rate or zero rate sales or other supplies. It excludes the actual VAT that you charge, VAT exempt sales and sales of any capital assets.
Generally you don't reclaim any of the VAT that you pay on purchases, although you may be able to claim back the VAT on capital assets worth more than £2,000 - see the section in this guide on claiming back VAT on capital assets for the rules and restrictions.
Once you join the scheme you can stay in it until your total business income is more than £225,000
I believed you would have to drop out of the scheme but according to HMRC's website (extract below) you can remain in it until your turnover reaches £225k.
Also awaiting response from my accountant.
From HRMC website:-
Who can join the Flat Rate Scheme
You can join the Flat Rate Scheme for VAT and so pay VAT as a flat rate percentage of your turnover if:
•Your estimated VAT taxable turnover - excluding VAT - in the next year will be £150,000 or less. Your VAT taxable turnover is the total of everything that you sell during the year that is liable for VAT. It includes standard, reduced rate or zero rate sales or other supplies. It excludes the actual VAT that you charge, VAT exempt sales and sales of any capital assets.
Generally you don't reclaim any of the VAT that you pay on purchases, although you may be able to claim back the VAT on capital assets worth more than £2,000 - see the section in this guide on claiming back VAT on capital assets for the rules and restrictions.
Once you join the scheme you can stay in it until your total business income is more than £225,000
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