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HMRC internal manual

VAT Retail schemes guidance

Mechanics of the standard retail schemes: Weekly summary of DGT

It is normal practice for branches of some multiple retailers to make weekly returns, calculated from DGT, to their head office. These returns are then collated to arrive at the total takings for the business which means that, instead of having a record of the DGT for the business as a whole, the head office is only keeping a weekly summary of the returns made by its branches. You may allow this arrangement subject to the following conditions:

  • each branch must keep a record of its DGT;
  • each branch must be able to support, if required, the information on its weekly return to head office by reference to the daily records; and
  • branches must make returns covering part-weeks, and the head office must collate and account for those returns in their retail scheme, if:
  1. the end of a tax period occurs in the middle of a week; or
  2. a change in the rate of tax or liability is made in the middle of a week.

Where this concession is allowed you must send a letter setting out the conditions to the retailer and obtain their written agreement.

In considering any other requests to dispense with the requirement to keep a record of daily gross takings, you should bear in mind the difficulties that such a break in the audit trail could cause. Unless they involve exceptional features, you should normally refuse all other requests.