Bespoke retail schemes: general principles: When must a bespoke scheme be in place?
A bespoke scheme must be in place as soon as the turnover of the business has exceeded £130m in the last 12 months. Businesses are advised in Notice 727 VAT retail schemes and Notice 727/2 Bespoke retail schemes to monitor their turnover closely if they think they might exceed the £130 million threshold but want to continue to use a retail scheme.
It is the responsibility of the business to approach HMRC with proposals for a bespoke scheme. The consequences of not agreeing a scheme are explained in the notice.