Question: Two years ago I joined the Flat Rate VAT and my turnover has gone up about the one hundred and fifty thousand pound limit. Does this mean I am done with the scheme?
Answer: Well there have been some changes and so long as your turnover does not top two hundred and twenty-five thousand pounds net of VAT for the twelve months, with cessation after one year of you joining the scheme, you are able to keep going.
However you need to include the two hundred and twenty-five thousand pounds and any non-inclusive income like lottery winnings or bank interest. If this pushes you past the limits, then you need to depart at the end of the VAT quarter.
If you would like any further information, please do not hesitate to contact Southside Accountants Wimbledon & London.