Back dating vat
Those below the registration threshold are likely to deregister.
A business is a "limited cost trader" if its VAT inclusive expenditure on goods is: • Less than 2% of its VAT inclusive turnover in a VAT period, or • Greater than 2% of its VAT inclusive turnover but less than £1,000 per annum (£250 per quarter).
You can choose the Flat Rate Scheme from initial VAT Registration, or you can switch to it at any time.
This webpage assumes that you know the basics of the standard VAT scheme, details available on our VAT Webpage Guide.
This can be backdated up to a maximum of four years prior to the date the application is received.Joe Bloggs, who is not registered for VAT as his turnover is just below the VAT threshold.In the last five years, he has incurred significant setup costs.   E:  For the first year of VAT registration you may apply a 1% deduction        to your FRS Rate. However the FRS has it own Cash Based Method which for most businesses is exactly the same as the Cash Basis for the normal VAT Scheme.If you are registering for VAT and FRS at the same time, your VAT/FRS registration can often be backdated to the point when you request your VAT registration to commence. If your business is already VAT registered, and you want to switch to FRS, you would normally change from the start of the last unfiled VAT Return.