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HMRC internal manual

VAT Flat Rate Scheme

Introduction: What is this guidance about?

Our books of guidance are the main reference material for people working in HM Revenue & Customs (HMRC). They outline all of our formal procedures and work systems, providing managers and staff with general advice on interpreting the rules and guidelines.

The guidance is aimed at HMRC staff and should not be relied upon by businesses in calculating their taxes and/or duties.

This guidance is about the VAT flat rate scheme (FRS) for small businesses, which was introduced in Budget 2002.

Notice 733 VAT flat rate scheme for small businesses explains the scheme and you should look there first for guidance on its principles and workings. This book of guidance is supplementary to the rules explained in the Notice.