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

HMRC internal manual

VAT Retail schemes guidance

From
HM Revenue & Customs
Updated
, see all updates

Adaptations to standard retail schemes: Apportionment scheme 1

Turnover limit

There is an upper taxable retail turnover limit of £1 million per annum for this scheme. There is no tolerance limit above that for continuing to use this scheme.

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

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

Annual adjustment

The annual adjustment is carried out at the end of the retail scheme year (that is, in the fourth quarter following the retailer’s commencement of use of the scheme). So, for example, if the retailer is on stagger 1 and started to use the scheme from his date of registration on 5 July, the annual adjustment should be made on the return for the period ending 30 June.

A retailer may apply for approval to bring the annual adjustment in line with his financial year-end. This may be allowed, although you may need to consider the effect on the first such annual adjustment, authorising a longer period than 12 months for the adjustment period where necessary to ensure that any distortions are avoided.