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I have recently taken on a new client who is on the flat rate vat scheme. I have just got access to his vat records online and think he has reached the flate rate vat threshold. Having checked on the HMRC website I notice that you reach the flat rate vat threshold when:
On the anniversary of joining, your turnover in the last 12 months was more than £230,000 including Vat, or you expect it to be in the next 12 months.
Basically my client joined the scheme in January 2013 so I have looked at his last 4 vat returns Feb 2015 - Jan 16 and have calculated the gross turnover on them at £260,000. Am I correct in thinking it is time for him to swap to a different vat scheme? Basically his next VAT return is due at the end of this month for Feb - April 16 and I need to know whether to alter the settings in Quickbooks.
Having looked on the HMRC website I note that is says you need to write to HMRC to let them know you are swapping schemes. I have spoken to HMRC on the phone twice regarding this and received two different answers. The first time I was told I did need to write a letter and then when I phoned again to ask whether as my clients vat agent I could write on their behalf I was told you could just swap and no need to write a letter. I am thinking it is probably best to write anyway but just wondered if anyone could advise me on this situation at all please.
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