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HMRC internal manual

VAT Retail schemes guidance

Bespoke schemes: practical guidance: Date of withdrawal

If HMRC withdraws agreement, that action can take effect from

  • an agreed date (prospective or retrospective); but see VRS7650 about retrospective variation only in exceptional circumstances;
  • the next accounting period after an unambiguous decision to use the power of Regulation 68 of the VAT Regulations 1995 [SI 1995/2518] has been communicated to the business; or
  • where the protection of the revenue warrants it, from the date an unambiguous decision to use the Regulation 68 power has been communicated to the business.

In exceptional circumstances, withdrawal from an agreement may be exercised from an earlier date than the notice. This can happen where a business has been advised that:

  • the Commissioners reserve the right to use the powers from a current date; but
  • that action will be deferred pending discussion.

If this is done, the business must be informed in writing that returns submitted after the notice of intention to use Regulation 68 powers has been given will be processed without any implication that they are acceptable.