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HMRC internal manual

VAT Flat Rate Scheme

From
HM Revenue & Customs
Updated
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Addressing risks and assurance: What if a tax assessment is appropriate?

The true tax for the period will derive from the proper application of the correct flat rate percentage to the business’ total FRS income.

This means that where the business was eligible and authorised to use FRS in the period to be assessed, your assessment must be based on the methodology of the flat rate scheme.