Julian Anthony Goodman appealed to the First-Tier Tribunal regarding HMRC's decision to refuse retrospective entry to the VAT Flat-Rate Scheme for small businesses. Mr. Goodman provided consultancy services in a self-employed capacity from 1 July 2012 to 28 February 2014 and was registered for VAT from the 1 July 2012 however he did not apply for the Flat-Rate Scheme until May 2014, after he had ceased trading and once he became aware of the scheme. Mr. Goodman requested that his entrance to the scheme be backdated to the date on which he began trading however HMRC only authorised him to make use of the scheme from 1 March 2014.On appealing this decision, it was agreed that Mr. Goodman satisfied the necessary criteria for admission to the Flat-Rate Scheme from 1 July 2012 but rejected his argument that he had overpaid VAT (as the correct amount had been paid under the standard VAT rules) and thus there was no duty on HMRC to permit retrospective admission, particularly as there were no exceptional circumstances in this case. The Appeal was therefore dismissed and retrospective entry to the Flat-Rate Scheme was disallowed.Please call our free helpline to discover if you are eligible for admission on to an existing special scheme, such as the Flat-Rate Scheme, available to VAT registered businesses.
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