Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Retail schemes guidance

HM Revenue & Customs
, see all updates

Fundamentals of the retail schemes: Ineligible use of a retail scheme

If a business uses a scheme for which they are ineligible, (for example on turnover grounds), you must advise the retailer that they are not eligible to use the scheme they have chosen (giving the date that such ineligibility arose) and ask them to choose another scheme for which they are eligible. The retailer will normally be expected to recalculate their output tax for the periods in which they were ineligible to use the chosen scheme. You should consider raising an assessment for any tax misdeclared, with penalties and interest if appropriate, under the normal procedures: see VRS2350.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)