Flat interest
After losing a case earlier this year, HMRC have confirmed that they don’t expect small businesses which use the Flat Rate Scheme to account for any VAT on bank interest received. Most FRS users haven’t paid this VAT in the past – it was something that only HMRC seemed to think was due – but if you have, you will be able to claim it back for the last four years. If you think this might apply to you, we can check.