Flat rate scheme (FRS) ― eligibility, joining and leaving the scheme

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note sets out the eligibility conditions that must be met for a person to join and stay in the flat rate scheme (FRS). It also covers the process for joining and leaving the FRS.

For an overview of the FRS more broadly, see the Flat rate scheme (FRS) ― overview guidance note.

See also De Voil Indirect Tax Service V2.199B.

Eligibility to join the FRS

To be eligible to join the flat rate scheme (FRS), a trader must meet certain conditions. The conditions can conveniently be divided into the following categories:

•
level of turnover
•
offences / penalties
•
group / divisional registration and associated persons
•
use of other VAT schemes
•
other exclusions

VATA 1994, s 26B(4)

Level of turnover

To join the FRS, there must be grounds for believing that the value of taxable supplies in the next year will not exceed £150,000 excluding VAT.

The relevant turnover is therefore the VAT exclusive (or net) value of supplies made at the

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Value Added Tax

Exporting goods ― proof of export

Exporting goods ― proof of exportIn addition to the requirements laid down in the Exporting goods ― overview guidance note, businesses intending to zero-rate exported goods must hold satisfactory evidence that the goods have been delivered to a destination outside of the UK. If satisfactory evidence

15 Dec 2020 14:02 | Produced by Tolley Read more

Personal Tax

Enterprise management incentive schemes

Enterprise management incentive schemesWhat is an enterprise management incentive (EMI) scheme?The enterprise management incentive (EMI) scheme is a tax-advantaged share option employee incentive scheme aimed at small entrepreneurial companies that meet certain conditions. It is designed to assist

14 Jul 2020 11:36 | Produced by Tolley Read more

Owner-Managed Businesses

Interest on late paid tax

Interest on late paid taxIntroductionInterest on late paid tax is a compulsory charge set out in legislation to reflect the interest which would have accrued to the Exchequer had the correct amount of tax been paid at the right time.Harmonised legislation was introduced in 2009 to:•set statutory

14 Jul 2020 12:00 | Produced by Tolley in association with Philip Rutherford Read more

UU��ֱ��