Operation of the scheme: Conditions of joining the scheme
To join the scheme, a farmer must satisfy all of the following conditions.
- They must be in business producing goods, or goods and services, but not services alone, which qualify under the scheme.
- If they are currently registered for VAT their registration must be cancelled. VATAFRS0225 gives guidance on the considerations necessary before the VAT registration is cancelled.
- The estimated flat rate addition (FRA) they will be entitled to charge in their first year must not be £3,000 or more than the input tax they would have been able to claim (VATAFRS1600 explains how to work this out).
- In the last 3 years they must not have been issued with a civil penalty under VAT Act 1994 Section 60 for dishonestly evading VAT, or have been convicted of any VAT offence, or have had proceedings compounded under CEMA Section 152.