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HMRC internal manual

VAT Annual Accounting Scheme

From
HM Revenue & Customs
Updated
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Operating the scheme: Conditions for continuing use of the scheme

Regulation 50 (2) and (3) list the requirements for businesses who use the annual accounting scheme. 

50(2) A taxable person authorised to pay and account for VAT in accordance with the scheme shall-

(a) pay to the Commissioners by credit transfer-

(i) where the taxable person and Commissioners agree to such payment pattern, the quarterly sum, or as the case may be the agreed quarterly sum, no later than the last working day of each of the fourth, seventh and tenth months of his current accounting year; 

(ii) in all other cases, the monthly sum, or as the case may be, the agreed monthly sum, in nine equal monthly instalments, commencing on the last working day of the fourth month of his current accounting year; and 

(b) make by the last working day of the second month following the end of that current accounting year a return in respect of that year, together with any outstanding payment due to the Commissioners in respect of his liability for VAT for the current accounting year declared on that return.