Introduction: Scope of this guidance
Our books of guidance are the main reference material for people in the Department. HMRC formal procedures and work systems are outlined in these books, which give managers and staff the Department’s rules and guidelines and general advice on interpreting them.
The guidance is aimed at HMRC staff and should not be relied upon by businesses when calculating their taxes and/or duties.
This guidance supplements and should be read together with VAT Notice 732 Annual Accounting.
It also deals with the interaction between the annual accounting and the flat rate scheme. You can find further information on the flat rate scheme in Notice 733 Flat rate Scheme for Small Businesses and FRS - Flat rate scheme guidance.