CJ Sims v HMRC

VAT: Application for retrospective operation of flat-rate scheme

In CJ Sims v HMRC (TC00386 – 8 March) an electronics engineer (S) registered for VAT in 2003. In November 2007 he applied to join the flat-rate scheme with retrospective effect. Initially HMRC refused to allow him to backdate his entry into the scheme. However in April 2008 after correspondence an HMRC officer agreed to allow him to backdate his entry into the scheme to 1 April 2005. S appealed contending that he should have been permitted to backdate his entry to the scheme to April 2002 when the scheme was introduced (even though he did not register for VAT until 2003). The Tribunal rejected this contention and dismissed his appeal observing that S could have requested entry into the flat-rate scheme well before he actually did so.