A client of mine set up last year and asked me to do their books. I started work on their company earlier in the year, on their first ever vat return we issued it via sage using the normal vat scheme, paying all vat over on invoiced dates and claiming purchase vat also. I am now aware of the flat rate scheme and think my client should be using this. My client works on a consultancy basis and does not earn in excess of £150k He has his own appointed accountants who registered his company and set up his vat registration also. Is it my fault that I didnt put him on this scheme or should this already have been discussed and set up with his accountant prior to my doing his books ?
This should have been dealt with by his accountant when the client was registered with VAT... and the responsibility shouldn't fall on you at all.
The accountant may have their reasons for not using the flat rate scheme, so it might be worth having a word to them and explaining why you think the client might be best on the scheme.
Just be careful not to tread on toes too quickly as he has accountants that should be providing the advisory service in this area.
As part of registering your client for VAT the accountant should have looked into the scheme most relevant to your clients situation. It may have been for a variety of different reasons that it was decided to use the standard scheme. Although on the face of it the flat rate scheme may appear to be of benefit, in practice this may not always be the case.
Being proactive is great and clients love it if it saves them money. Therefore you may want to mention to your client that it might be worth looking into the flat rate scheme, and recommend they speak to their accountant for further advice.
It sounds like you're doing a great job so don't worry!
Dustin
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"People who are exceptionally good in business arent so because of what they know but because of their insatiable need to know more"
