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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