Appealing against removal from the VAT flat rate scheme

[mikef]

I've received a notice VAT 89 of removal from the flat rate scheme as the tax inclusive value of our supplies in the last 12 months has exceeded the threshold.

This has been a "one off" year with an amount of overseas consulting work where a fair chunk of travel expenses have been billed to the client in the UK and subject to VAT. I'm also planning to go into R&D mode for a while and hold off from fee-earning work.

The notice says that I can appeal in writing to remain within the scheme and will need to demonstrate that
- Turnover for the coming year will not exceed the entry threshold for the scheme (should be OK, but how to prove that?)
- The increase in the past 12 months is a "one off" and not expected to recur
- Sales were due to genuine commercial activity

I wondered whether anyone here has successfully appealed against removal and how did they demonstrate that hitting the threshold was the result of one-off circumstances?

Having to fully account for all VAT would be real pain...

[mikef]

It's certainly my wish, but the truth is that if another can't-say-no lucrative contract turned up with the same arrangements (bill everything in the UK) then I guess it could happen again; but I could voluntarily withdraw from fixed rate VAT as soon as that looked like happening

[mikef]

Thanks Eric, I'll take your advice and not appeal. Flat rate has worked very well both because the admin is practically zero - just tot up the inputs once a quarter - and we have had very little VAT-rated outgoings, as most of the spend has been on flights and overseas hotels, car hire, some UK train and parking.

[mikef]

Quite right Eric, the outputs

I do have a grand or so of EC services sales, mainly Google advertising (and under flat rate have had to include the VAT I never actually got to charge on that, so that's one advantage of switching I guess)

Is a VAT inspection more likely once on the normal scheme would you say?