VAT Flat Rate

I joined the Flat Rate VAT scheme nearly two years ago.  In that time my turnover has risen above the 150,000 limit.  Does this mean I have to leave the scheme and if so when?

1st June 2009

HMRC recently revised the rules concerning the turnover limit.  Now provided that your turnover does not exceed 225,000 net of VAT for the 12 months ended on the anniversary of you joining the scheme then you can continue to use the Flat Rate VAT scheme. 

You must include in the 225,000 any exempt income such as bank interest, lottery commission or rents.  If you have exceeded the limit then you will have to leave the scheme at the end of the VAT quarter which contains the anniversary date of you joining the scheme.

By Jo Nockels

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