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Posted Mon, 09 Dec 2024 12:27:44 GMT by JohnLiquid01269
Hi, I have received a letter from HMRC and been told I have gone over my £230,000 vat threshold and therefore must leave right away unless I will earn less than £191,500 in the next 12 months where hmrc may then allow me to stay if I can prove it. My issue here is, I have sold 3 separate Plant and Machinery Assets which I believe should not account towards the flatrate threshold calculations and if I'm correct, then I'm not over the threshold. I'm well below the threshold infact. So am I correct in saying I should still be able to be apart of the Flat rate scheme as the sale of the assets should not be included in that turnover calculation for the total vat threshold and therefore need to write to HMRC noting this situation? Thanks
Posted Tue, 10 Dec 2024 11:27:37 GMT by HMRC Admin 21 Response
Hi,
The requirements for having to leave the Flat Rate Scheme are outlined below:
12. Leaving the scheme.
It does state in the guidance that you become ineligible to use the Flat Rate Scheme if:
At the anniversary of your start date your total income (including VAT) in the year then ending (excluding sales of capital assets) is more than £230,000.
I would therefore contact the Flat Rate Scheme as below:
VAT: Annual Accounting and Flat Rate Schemes.
Thank you.

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