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HMRC internal manual

VAT Retail schemes guidance

HM Revenue & Customs
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Fundamentals of the retail schemes: Mixtures of schemes: Acceptable mixtures of schemes

Normally, a retailer will use a single retail scheme for the whole of his business. Retailers involved in supplying both goods and services may need to use more than one scheme. In addition, retailers with a number of separate business locations or different types of shops may prefer to use either a number of different schemes in each location or even the same scheme. This is provided for in law by virtue of Regulation 69 of the VAT Regulations 1995, which enables HMRC to allow more than one scheme to be used:

  1. No retailer may at any time use more than one scheme except as provided for in any notice or as the Commissioners may otherwise allow.

Notice 727 Retail schemes and the associated

detail which schemes may be used by a retailer in particular circumstances, including those with businesses at separate locations. Any retail scheme can also be combined with normal accounting.

The following are acceptable combinations:

Scheme … may be used with …
Point of sale scheme any of the following
  • direct calculation scheme 1
  • direct calculation scheme 2
  • direct calculation scheme 1 and normal accounting
  • direct calculation scheme 2 and normal accounting
  • apportionment scheme 1
  • apportionment scheme 2
  • apportionment scheme 1 and normal accounting
  • apportionment scheme 2 and normal accounting
  • normal accounting     
      Direct calculation scheme 1 normal accounting
      Direct calculation scheme 2 normal accounting
      Apportionment scheme 1 normal accounting
      Apportionment scheme 2 normal accounting