VAT – Annual Accounting Scheme
HMRC have published a revised copy of the VAT annual accounting scheme notice. The use of the scheme is open to most businesses with a turnover of up to £1.35m per year. The main benefits of the scheme include the requirement to file only one VAT return per year as well as the payment of estimated set VAT liabilities by quarterly or monthly instalments with a balancing payment at the year end.
The revised copy of the notice which replaces the April 2006 version has been made easier to read and also includes the following revisions:
Two new paragraphs (6.4 & 6.5) were added which explain how to make a balancing payment
A new paragraph (7.5) which explains the procedure for leaving the scheme
A new paragraph (7.7) which explains the procedure for businesses deregistering from VAT
A new paragraph (8.6) which confirms the postal address for application forms