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HMRC internal manual

VAT Agricultural Flat Rate Scheme

HM Revenue & Customs
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Operation of the scheme: Regulatory penalties


The VAT Act 1994 Section 69 provides for regulatory penalties to be issued if a person fails to comply with a regulatory requirement. For the agricultural flat rate scheme this would normally be under Section 69(1)(d); for a failure to comply with regulations made under the VAT Regulations1995 Regulations 202 to 211.

The VAT civil penalties manual outlines the policy and procedures for assessing for regulatory penalties for VAT-registered traders and non-registered persons. A similar approach should be adopted before issuing regulatory penalties for persons failing to comply with the regulatory requirements of the flat rate scheme. Please consult (This content has been withheld because of exemptions in the Freedom of Information Act 2000) if you are in any doubt about whether a regulatory penalty can be assessed, or about the appropriate procedures to follow.