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HMRC internal manual

VAT Annual Accounting Scheme

HM Revenue & Customs
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Operating the scheme: Partially exempt businesses

Businesses that are partially exempt may use the annual accounting scheme. If the partial exemption indicator is set to 1 or 2 the turnover check will be increased to £1,600,000.

The annual accounting year end must be the same as the partial exemption (PE) year end. The PE year end cannot be changed. Further information can be found in the partial exemption manual.