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HMRC internal manual

VAT Agricultural Flat Rate Scheme

Appendices: compulsory cancellation of certificates

VATAFRS0400 explains the context of this page.

  1. If a certificate must be cancelled, advise Grimsby Registration Unit, who will write to the farmer and:
* explain the reason for cancellation of the certificate;
* confirm the date of cancellation;
* point out that compulsory cancellation is an appealable matter under the VAT Act 1994 Section 83(m); and
* ask the farmer to return the flat rate farming certificate to Grimsby Registration Unit.
  1. The effective date of cancellation will depend on the reason for cancellation:
Reason Cancellation date
False statement made at time of application, which affects entitlement to certification. Date the false statement is discovered.
Convicted of an offence in connection with VAT, or payment made to compound proceedings under CEMA, section 152. Date of conviction or payment to compound proceedings.
Assessed for penalty under the VAT Act 1994, section 60. Thirty days after the assessment is issued.
Designated activities cease. Date activities cease.
Death, incapacity or bankruptcy. Date of death, incapacity or bankruptcy.
Liable to be registered for VAT under VAT Act 1994, Schedule 1 or Schedule 3. The effective date of registration.
Protection of the revenue. Date on which the Commissioners consider the risk arises.
  1. Grimsby Registration Unit will amend the flat rate farmer details to cancel the farmer’s certification and confirm their action in writing.
  2. If the farmer appeals against compulsory cancellation of the certificate, please send copies of all relevant correspondence to VRAP team for information. If the farmer is making a legal challenge, we will provide advice on request.
  3. If there is reason to believe that the farmer is obliged to register for VAT, advise the Registration section accordingly.