The CIOT has published additional information it has received from HMRC on changes to the VAT flat-rate scheme. The information concerns:
leaving the scheme: HMRC confirmed that there is a requirement to notify that someone will be leaving the scheme, although they do not have to wait for a letter from HMRC to leave the scheme and can withdraw retrospectively provided they have not already submitted a return; and
hybrid returns: HMRC confirmed that the new rules apply only for that part of an accounting period that falls after 1 April 2017, meaning traders could have hybrid returns where two FRS rates are applied (the ‘normal’ rate until 31 March 2017 and the ‘low-cost trader’ rate from 1 April 2017).
The new regulations will be laid on 8 March 2017 and will come into effect on 1 April 2017.
The CIOT has published additional information it has received from HMRC on changes to the VAT flat-rate scheme. The information concerns:
leaving the scheme: HMRC confirmed that there is a requirement to notify that someone will be leaving the scheme, although they do not have to wait for a letter from HMRC to leave the scheme and can withdraw retrospectively provided they have not already submitted a return; and
hybrid returns: HMRC confirmed that the new rules apply only for that part of an accounting period that falls after 1 April 2017, meaning traders could have hybrid returns where two FRS rates are applied (the ‘normal’ rate until 31 March 2017 and the ‘low-cost trader’ rate from 1 April 2017).
The new regulations will be laid on 8 March 2017 and will come into effect on 1 April 2017.
