VAT question

[colin553]

Hi

So at £85k sales you need to be VAT registered.

Then if you use the vat flat rate scheme you can pay 7.5% as long as you dont go above £230k per year.

''Leaving the scheme
You must leave the scheme if:

you’re no longer eligible to be in it
on the anniversary of joining, your turnover in the last 12 months was more than £230,000 (including VAT) - or you expect it to be in the next 12 months
you expect your total income in the next 30 days alone to be more than £230,000 (including VAT)''

So if I sold 230k i would owe 17250 vat

My question is what happens if i sell 300k for instance?

Do i pay 17250 on the 230k and then 20% on the next 70k?
Or 20% on the whole 300k?

and if that happened i wouldnt be allowed to go back onto the scheme the next year so would i have to pay 20% on everything then?

thanks for any help

[blueuk]

You need to speak to an accountant specialising in online retail. A forum with like 80% US based members isn't the place.

[JamesNorth101]

You cannot use flat rate if you trade over £230k.

You dont get into a new bracket, you just cannot use it at all im afraid

You should be looking to talk to an account for more details though

[rsot]

Welcome to the forum - all the best as you master stealth

Financial professional is definitely in order for this magnitude e.g. accountant

[ckev26]

If you were able to go over it then everyone who is VAT reg whould be in it, the answer was already in the question you asked "you’re no longer eligible to be in it"