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HMRC internal manual

VAT Annual Accounting Scheme

Renewals: Rejection at renewal time

The system will automatically recognise if a business is no longer eligible to use the scheme, for example if its turnover has exceeded £1,600,000. The business will be notified by letter that it can no longer use the scheme and must start accounting for VAT on the normal quarterly basis.

As with applying for the scheme (VATAAS2200), however, if the business confirms that its annual turnover in the coming year will be less than £1,350,000 it may remain on the scheme.