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HMRC internal manual

VAT Annual Accounting Scheme

Introduction: History of changes to the turnover ceilings for the scheme

## Date ## Change
1 April 2001 Entry ceiling increased from £300,000 to £600,000.

Exit ceiling increased from £375,000 to £750,000.

(‘Entry ceiling’ is the turnover up to which businesses are eligible to start using the scheme. ‘Exit ceiling’ is the turnover above which businesses must leave the scheme.)    
  25 April 2002 New ‘lower entry’ ceiling introduced which, for the first time, allowed businesses with a taxable turnover up to £100,000 to join the scheme in their first year of registration. Previously, all businesses had to wait to join the scheme until they had been registered for a year.
  10 April 2003 Lower entry ceiling increased from £100,000 to £150,000.
  1 April 2004 Entry ceiling increased to £660,000.
Exit ceiling increased to £825,000.    
  1 April 2006 Entry ceiling increased to £1,350,000.

Exit ceiling increased to £1,600,000.

Lower entry ceiling of £150,000 was abolished. This meant that, for the first time, all businesses with a turnover up to £1,350,000 could join the scheme from their date of registration.