fantasticmax
29-09-07, 14:26
HELP!
I registered a family member online for Flatrate VAT as a sole trader due to the new IR35 laws.
The person I registered has then decided to become a ltd entity so I advised them to use an accountant and here is where the problems have started.
I told them to let their accountant know that I had registered them for flatrate vat and to ask them to transfer legal entity to the ltd company. The accountant then contacted HMRC only to be told that they couldn't convert him to a Ltd company and that he had to re register for VAT. They did this and for some unknown reason he has been registered for standard vat and not flat rate.
Does anybody know what I can advise him, as I feel that HMRC have not done their job correctly and think that they should convert this person to flat rate from the date the company was incorporated.
My question is, would you raise this to HMRC or would this person be wasting their time?
I registered a family member online for Flatrate VAT as a sole trader due to the new IR35 laws.
The person I registered has then decided to become a ltd entity so I advised them to use an accountant and here is where the problems have started.
I told them to let their accountant know that I had registered them for flatrate vat and to ask them to transfer legal entity to the ltd company. The accountant then contacted HMRC only to be told that they couldn't convert him to a Ltd company and that he had to re register for VAT. They did this and for some unknown reason he has been registered for standard vat and not flat rate.
Does anybody know what I can advise him, as I feel that HMRC have not done their job correctly and think that they should convert this person to flat rate from the date the company was incorporated.
My question is, would you raise this to HMRC or would this person be wasting their time?