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Can an incorrect date of withdrawal from the flat rate scheme be corrected?
I have a client who wrote to HMRC to withdraw from the VAT flat rate scheme on 31 December 2013. The reason for this was that his annual sales in the four VAT periods up to that date had exceeded £230 000 including VAT (he joined the scheme on 1 January 2005).
Having read 24 hours by Neil Warren I realise I should have instructed the client to withdraw from the scheme on 31 March 2014: the period that contains the date of when he joined.
Can we treat this extra period (£1 890 tax overpaid) as an error even though it was the client who asked for the withdrawal date of 31 December or should we write to HMRC explaining what has happened because it seems that they have been getting the departure date wrong as well?
As I understand it the client cannot reapply...
