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HMRC internal manual

VAT Small and Medium Enterprises Assurance Manual

Supplementary or alternative checks: retail Scheme calculations

  • a full check should be made of retail scheme calculations for one period, to determine arithmetical accuracy and practical compliance with the scheme. Where an annual adjustment is a required part of the scheme, checks should be made that it has been correctly carried out in the right period;
  • check whether appropriate deductions/additions (as described in the relevant “How to Work” Notices in the 727/ series) have been made to the DGT record;
  • check, in apportionment schemes where the output tax calculation would be affected, that standard-rated purchases are not recorded as zero-rated, or that expenses have not been included as purchases; and
  • the appropriate “How to work” leaflet should be referred to for further assistance.

Extensive checks should only be undertaken where there is reason to doubt the overall validity of such calculations.