Ending flat rate VAT

Bmwm3gt2

Hi, we are currently on the flat rate scheme and am after a bit of advice as to when you need to go from this to normal vat. The turnover over the last year isn’t at £230k but it says if you expect turnover to top £230k in the next year. Ideally we would like to stay on FR for as long as possible but how do they measure expecting in the next year? Is it an average over the last day, week, month…? What we obviously don’t want to do is get a penalty for not swapping away from FR but it seems a bit ambiguous and unclear! Many thanks for your replies.

tightauldgit

As I remember it then basically the period just rolls so it's basically if at any point in the next year you expect to have turned over the amount in the previous 12 months. 

I don't think there is any way they can really hold you to it or penalise you if things are borderline provided you register when it becomes clear you are going to breach the threshold. On the other hand if you were turning over £100k a month and didn't do it they might have an issue with that. 

It's your call really if things are borderline. If you are turning over £20k a month then I think you can wait and see. If it's more like £40k then I think it's clear that you are going to go over the threshold unless something drastic happens.