Q. My company makes a relatively high number of business sales to EU-based personal customers - usually over the summer. We also use the VAT flat rate scheme, and I've heard that Brexit may cause issues for us. Is that the case and if so, can we leave the scheme for the summer months?
A: Yes. The problem arises because sales to EU customers are now all zero rated, so you aren't collecting input tax. However, you must still apply the flat rate percentage to these sales. If many of your sales are zero rated, it would probably make sense to leave the scheme. This can be done at any time, just make sure HMRC is informed of your chosen leaving date. However, please note that once you leave you cannot re-join for at least 12 months, so you can't leave for a few months then come back to the flat rate scheme after the summer.
The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
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