727 retail+schemes

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Notice 727 Retail SchemesJanuary 2011

Foreword

This notice cancels and replaces Notice 727 (March 2002). Details of anychanges to the previous version can be found in paragraph 1.1 of this notice.

1. Introduction

1.1 What is this notice about?

This notice provides information about the retail schemes available to you if you are aVAT registered business making retail sales and you are unable to account for VATin the normal way.

It explains how to choose a scheme which best suits your business. It also provides

information on matters common to all our schemes (for example, recording your DailyGross Takings, what to do if the VAT rate changes or if you cease using a retailscheme) and rules on special circumstances such as:

catering supplies

retail supplies made by chemists, and

supplies made by florists.

The notice has been restructured to improve readability, but the technical content has

not changed from the August 1997 version.

1.2 What are retail schemes?

The retail schemes are methods you can use to arrive at the value of your taxableretail sales and to determine what proportion of those sales are taxable at thedifferent rates of VAT. As at 4 January 2011 the VAT rates are:

standard rate (20%)

lower rate (5%) and

zero rate (0%).

Most VAT registered businesses take these details from tax invoices issued tocustomers. These schemes provide an alternative if you are a retailer and you find itdifficult to issue invoices for a large number of supplies made direct to the public.Each scheme has a turnover limit.

The boxed text below has the force of law.

The turnover limits for the schemes apply to the whole of your VAT registration.

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If you make a mixture of retail and non retail sales you can use a retail scheme tocalculate the tax due on your retail sales only. You must account for non retail salesusing the normal method of accounting.

2.3 How do I choose a retail scheme?Sections 3 and 5 explain briefly the way in which the different schemes work and howthey suit different types of business. You will find further information about individualschemes in the specific retail scheme notice.

If, after reading Sections 3 and 5, you find that you are eligible for more than onescheme you will need to choose the one best suited to your particular business. Youshould also consider other factors too, such as the complexity of the calculation andthe amount of paperwork, record-keeping or stock taking you will need to undertake,relative to the other schemes.

Section 11 shows a comparison in table form. Remember, the valuation of the taxdue may vary from scheme to scheme.

2.4 Can I use a retail scheme for sales to otherVAT registered businesses?

This paragraph has the force of law.

Sales to other VAT registered businesses must not be included in a retail scheme.The exception to this is occasional cash sales, for example a:

garage supplying petrol to a VAT registered customer or

retail DIY store supplying building materials to a VAT registered builder.

3. Standard schemes

3.1 What are the standard schemes?

The standard schemes take their name from the principle on which they are based.They are:

the Point of Sale scheme

two Apportionment schemes, and

two Direct Calculation schemes.

You can choose any of the published schemes for which you are eligible.

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3.2 Can anyone use the standard schemes?

The standard schemes are only available if your business has an annual VATexclusive turnover for retail sales below 130 million. If your annual tax exclusiveturnover exceeds this amount you must agree a bespoke scheme with your localVAT Business Advice Centre (see Section 5).

3.3 Will you ever refuse use of a retail scheme?

Yes, we may refuse use of a retail scheme:

if you can reasonably be expected to account for VAT in thenormal way

if the scheme you have chosen does not produce a fair and

reasonable result

for the protection of the revenue.

Paragraphs 3.4 to 3.13 give further details of each scheme.

3.4 How does the Point of Sale scheme work?

Under the Point of Sale scheme you calculate the tax due on your sales byidentifying the correct VAT liability at the time you make the sale.

This usually means using a till system which is capable of distinguishing betweengoods sold at different rates of VAT. But you can use the scheme if you can separateyour sales in another way, for example by using separate tills for different rates.

Once your system has produced the total value of sales at each rate you calculateyour output tax by applying the appropriate VAT fraction to the relevant portion ofyour Daily Gross Takings (see paragraph 4.6).


If you make only standard or only lower-rated sales, you must use this scheme.

3.5 What factors should I consider beforechoosing the Point of Sale scheme?

The Point of Sale scheme is potentially the simplest and most accurate. Butelectronic tills can be expensive and you and your staff need to be able to operatethe system correctly even at the busiest times.

You can find further information about the Point of Sale scheme in Notice 727/3 Howto work the Point of Sale scheme.

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3.6 How does Apportionment scheme (1) work?

Apportionment scheme (1) is the simpler scheme designed for smaller businesseswith a tax exclusive turnover not exceeding 1 million.

Under this scheme you calculate the value of your purchases for resale at differentrates of VAT and apply the proportions of those purchase values to your sales.

For example, if 50% of the value of your goods purchased for retail sale arestandard-rated, then 50% of your takings are treated as standard-rated.

You then calculate your output tax by applying the relevant VAT fraction (or fractionsif more than one positive rate is used) to the standard-rated takings figure.

Once a year you make a similar calculation based on your purchases for the year.This is compared with the VAT you have paid in order to correct any over or under

payment.

3.7 What factors should I consider beforechoosing Apportionment scheme (1)?

The scheme is relatively simple. However, if on average, you achieve a higher mark-up for your zero-rated goods than your lower or standard-rated goods, you may findthat you pay more VAT if you use Apportionment scheme (1) than you would usinganother scheme.


You can only use the scheme if your total tax exclusive turnover from retail salesdoes not exceed 1 million

You cannot use the scheme for supplies of services, or for supplies of goodswhich you have made or grown yourself, or for supplies of catering.

You can find further information about the Apportionment schemes in Notice 727/4How to work the Apportionment Schemes.

3.8 How does Apportionment scheme (2) work?

Apportionment scheme (2) is available for businesses with a tax exclusive turnovernot exceeding 130 million.

Under this scheme you calculate the Expected Selling Prices (ESPs) of standard andlower-rated goods you receive for retail sale. You then work out the ratio of these tothe ESPs of all goods received for retail sale and apply this ratio to your takings.

For example, if:

60% of the ESPs of goods you receive for retail sale are

standard-rated and

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40% are zero-rated

60% of your takings are treated as standard-rated and 40% as zero-rated.

You calculate your output tax by applying the relevant VAT fraction to these figures.

There is no annual adjustment, but you must use a rolling calculation each taxperiod.

3.9 What factors should I consider beforechoosing Apportionment scheme (2)?

The scheme can be complex to operate but if you use it properly, it will provide youwith a more accurate valuation of your supplies over a period of time.


You can only use the scheme if your total tax exclusive turnover from retail salesdoes not exceed 130 million

You must be able to work out the Expected Selling Prices (ESPs) of your stock onhand when you start to use the scheme

You cannot use the scheme for supplies of services or catering.You can find further information about the Apportionment schemes in Notice 727/4How to work the Apportionment Schemes.

3.10 How does Direct Calculation scheme (1)work?

The Direct Calculation scheme (1) is available to businesses with a tax exclusiveturnover not exceeding 1 million. Under this scheme, you calculate the ExpectedSelling Price of goods for retail sale at one or more rates of VAT so that you cancalculate the proportion of your takings on which VAT is due.

As a general rule you must normally calculate the selling price of your 'minoritygoods'. These are the goods at the rate of VAT which forms the smallest proportion

of your retail sales.

However, you may mark up your 'majority' goods if this would be a simpler option foryour business and would produce a fair and reasonable result. For example, if youare a newsagent you may find that marking up your 'majority' sales of newspapersand magazines is more straightforward than marking up your 'minority' sales oftobacco and confectionery which may have been purchased from various sources.

3.11 Examples of how to work out youroutput tax under Direct Calculation scheme (1)

If you make:

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60% standard-rated sales and

40% zero-rated sales

your minority goods are your zero-rated goods.

You therefore calculate the Expected Selling Prices of the zero-rated goods youreceive, make or grow for retail sale and deduct that amount from your Daily GrossTakings (DGT). This gives the figure for standard-rated sales to which you apply theVAT fraction to arrive at your output tax figure.

If you make:

60% zero-rated sales and

40% standard-rated sales

you calculate the Expected Selling Price of the standard-rated goods received, madeor grown for retail sale and apply the VAT fraction to that figure to arrive at youroutput tax. Although it does not form part of this calculation, the record of DGT is stilla requirement of the scheme.

3.12 What factors should I consider beforechoosing Direct Calculation scheme (1)?

Direct Calculation scheme (1) can be relatively simple if you have a small proportion

of sales at one rate of VAT. But the scheme can produce inaccuracies if ExpectedSelling Prices are not calculated accurately. Additionally it can be complex to workout if you sell goods at three rates of VAT, though it may be possible to account for asmall number of goods at a third rate outside the scheme.

You should also consider the following:


you cannot use Direct Calculation scheme (1) if your annual tax exclusive retailturnover exceeds 1 million

if your minority sales are zero-rated you may not use the scheme for zero-ratedservices

if your minority sales are standard-rated you may not use the scheme forstandard-rated services

the scheme may not be used for supplies of catering.You can find further information about the schemes in Notice 727/5 How to work theDirect Calculation schemes.

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complete accounting period.

For example, if you account for VAT by reference to quarters ending March, June,September and December and your turnover makes you ineligible for a schemeduring February, you must cease to use that scheme to account for supplies made

on or after 1 July.

Some schemes require adjustments when you cease to use them, see paragraph6.1.

4.3 Can I change schemes retrospectively?

Retrospective changes to retail schemes are not normally allowed. The VAT andDuties Tribunals have repeatedly confirmed the principle that where you operate ascheme according to the published rules (or an agreed variation), the tax which isdue under that scheme is the correct VAT for the period. You cannot changeschemes retrospectively simply because another scheme produces a lower ordifferent valuation.

However, we may allow retrospective change in exceptional cases. If you think youhave exceptional grounds for a retrospective change you should write to your localVAT Business Advice Centre giving as much detail as possible.

The maximum period for recalculation following a retrospective change of scheme is3 years and you must have been, and remain, eligible to use the new scheme duringthe full period for which you apply.

4.4 Do I need to keep a record of my DailyGross Takings (DGT)?


Yes. All the retail schemes require a record of the value of your retail sales called theDaily Gross Takings or DGT. From the day you start to use a scheme you must keepa record of your DGT. You must include in this record:

all payments for your retail supplies as they are received by you from cashcustomers

the full value, including VAT, of all your credit or other non cash retail sales at thetime you make the supply and

details of any adjustments made to this record.

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4.5 How do I keep a record of my Daily GrossTakings?

The record of Daily Gross Takings (DGT) will normally be a till roll or copies of sales

vouchers. It is this record and not simply cash on hand which constitutes your DGT.There is a DGT checklist in the relevant scheme notices and you must ensure thatyour record complies with the requirements in the checklist.

NB: If your turnover is less than 1 million and you run a business where yourcustomers dont pay for the goods when they receive them (for example, you may bea milkman or newsagent), you may take account of opening and closing debtors inyour scheme calculations as follows:

First period of using a retail scheme

Takings for the period 30,000

Closing debtors (1,500)

Gross Takings for retail scheme purposes 28,500

Next period

Opening debtors + 1,500

Takings for the period 31,000

Closing debtors (1,600)

Gross takings for retail scheme purposes 30,900

4.6 Why must I keep a record of my DailyGross Takings?

You must keep a record of your Daily Gross Takings (DGT) because for most

schemes, you work out the VAT on your sales (your output tax) by applying the VATfraction to the appropriate portion of your DGT. The VAT fraction is simply a way offinding out how much VAT is contained in the total gross takings. You can find moreabout the VAT fraction in Notice 700 The VAT Guide.

4.7 What is my tax period if I use a retailscheme?

The standard tax period is quarterly. There are no special requirements if you are onstandard tax periods and using a retail scheme. Notice 700 The VAT Guide containsguidance on tax periods.

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If you are on the annual accounting scheme you must follow the rules set out inNotice 732Annual Accounting.

5. Bespoke schemes

5.1 What is a bespoke scheme?


If your annual of retail sales, excluding VAT, is above 130 million you cannot usethe published standard schemes.

If you think your annual turnover is about to exceed 130 million you should contactHMRC as soon as possible to agree a bespoke scheme.

A bespoke scheme will be tailored to meet the particular requirements of yourbusiness and is likely to be an adaptation, to a greater or lesser extent, of one of thepublished schemes.

You can find further information about bespoke schemes in Notice 727/2 VATBespoke retail schemes.

6. Ceasing to use a retail scheme

6.1 What must I do when I cease using a retailscheme?

Depending on the scheme you use, you must follow the rules in the table below.

The following has the force of law.

Scheme Procedure

Point of Sale No adjustment on ceasing to use for all or part of a VATregistration.

Apportionment (1) You must perform a closing adjustment, as for the annualadjustment, even if you leave before the anniversary ofstarting to use the scheme.

Apportionment (2) Normally no adjustment is necessary. However, if you areceasing to use this scheme in part of your business but arecontinuing to use it in other parts of the registration, makesure that the rolling calculation reflects the ExpectedSelling Prices of stock now excluded from theApportionment calculation.

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Direct Calculation (1) Normally no adjustment is necessary.

Direct Calculation (2) You must make a closing adjustment, as for the annualadjustment, even if you leave before the anniversary ofstarting to use the scheme. The adjustment must take

account of any disposals made during the year which werenot by way of retail sale. This is done by excluding fromthe figures used in the calculation, the value of any goodswhich were previously part of the scheme calculation butwere not a retail sale.

6.2 Are there any other rules when ceasing touse a scheme?

Apart from these special rules under the retail scheme, you should also remember:

only goods sold by retail can be included in the retail scheme. Ifyou cease to use a scheme because you transfer part or all ofyour business as a going concern, the value of stock transferredwill have to be excluded from your retail scheme, and

if you cease to trade, VAT may become due on the value of yourstocks and assets (see Notice 700/11 Cancelling yourregistration).

We may require additional adjustments where unusual patterns of trade prevent yourscheme from producing a fair and reasonable result.

For these reasons you must always tell your local VAT Business Advice Centre if:


you buy or sell part of a business or

the legal entity of your business changes (for example, from sole proprietor topartnership) or

you are registered as a group and the composition of the group is to change.

7. Changes of tax rate/liability

7.1 What is this section about?

This section supplements the rules in the 'How to work' notices and has the force oflaw under the Value Added Tax Regulations 1995 (SI 1995/2518). It tells you howyou should deal with supplies following a change in either the VAT rate or the liabilityof supplies.

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7.2 What is the definition of a change of VATrate?

For the purposes of this notice and the associated 'How to work' notices, a change in

VAT rate means that a rate of VAT has been changed or a new rate has beenintroduced.

7.3 How will I know if a new rate of VAT hasbeen introduced?

Any new rate of VAT will be widely publicised. When a change in the VAT rate occursit may be done at very short notice, for example, following a Budget. Whether youuse a computer or not you should have a system in place to cope with an unexpected

change in VAT rates.

7.4 What is the definition of a change inliability?

A change in tax liability occurs when a supply which is either exempt or zero-ratedbecomes taxable at a positive rate or a supply which is currently positive-ratedbecomes taxable at the zero rate or exempt.

7.5 How do I account for VAT under my chosenscheme if the rate of VAT changes?

If the change of rate falls part way through an accounting period you will have tomake two calculations one for the old VAT rate and one the new rate.

This will reflect supplies made before and after the rate change. You should addthese amounts together to give you your tax liability for the period.

8. Catering adaptation

This section supplements the rules in the 'How to work' notices.

8.1 Why is an adaptation for catering suppliesnecessary?

The Apportionment and Direct Calculation schemes described in this notice assumethat goods bought at one rate of VAT will be sold at the same rate. However, foodbought at the zero-rate often becomes standard-rated when sold in the course ofcatering. To account for those sales, you must normally use the Point of Sale

scheme to establish your VAT liability. The catering adaptation simplifies accountingif you are unable to use the Point of Sale scheme.

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8.2 What is the catering adaptation?

The adaptation is an alternative to the Point of Sale scheme and may be used bybusinesses with a tax exclusive retail turnover not exceeding 1 million. Thisadaptation replaces the section Accounting for VAT in Notice 709/1 Industrial, staffand public sector catering.

8.3 What are the conditions for using thecatering adaptation?


You may use the catering adaptation described in paragraphs 8.7 and 8.8 provided:

you can satisfy us that you are unable to operate the Point of Sale scheme you have reasonable grounds for believing that the tax-exclusive value of your

taxable retail catering sales (standard and zero-rated sales) will not exceed 1million in the next 12 months and

your use of the catering adaptation produces a fair and reasonable result in anyperiod.

8.4 What happens if I do not comply with theconditions?

If you do not comply with the conditions of the catering adaptation we may:

assess for the underdeclared VAT arising from unsatisfactoryuse of the catering adaptation and/or

refuse use of the catering adaptation for future periods.

8.5 How do I start to use the adaptation?


If you wish to use the adaptation and meet the conditions detailed in paragraph 8.3you must notify your local VAT Business Advice Centre. Generally we will do nomore than acknowledge your letter. You may begin to use the adaptation as soon asyou receive our acknowledgement.

8.6 Do I have to maintain any records?


Yes. To use the catering adaptation you must maintain a record of Daily Gross

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Takings (DGT).

The DGT is not simply a record of cash on hand. Details of the DGT requirementsare given in paragraphs 4.4 to 4.6.

8.7 How do I calculate my output tax under thecatering adaptation?

To calculate your output tax on catering sales, follow the procedure in the table belowfor each tax period.


Step Procedure Result

1 Establish your Daily Gross Takings (DGT) in accordancewith paragraphs 4.4 to 4.6 and the rules contained in therelevant scheme notice.

________

2 Calculate the percentage of your total catering salesmade at the standard rate. See the rules covering themaking of the calculation in paragraph 8.8.

= %

3 Apply the percentage at Step 2 to the DGT at Step 1. _________

4 Total at Step 3 x VAT fraction. (1/6 for VAT at 20%.) __________

This is youroutput tax oncatering salesfor this period.

8.8 How do I calculate the percentage of mystandard-rated sales?


Your method of calculation must be able to satisfy us when we visit that the cateringadaptation gives a fair and reasonable result in any period. Whichever way youchoose to make your calculation you must always:

base the calculation on a sample of your actual sales for a representative period.The representative period will depend on the nature of your business but youmust be able to satisfy us that it takes account of hourly, daily and seasonalfluctuations

retain details of the sample, including the dates and times it took place and

carry out a new calculation in each tax period. You must not use a calculation thathas been established by a previous owner of the business.

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8.9 What is the legal basis for the cateringadaptation?

The catering adaptation is published under regulation 67 of the VAT Regulations

1995.

9. Retail chemist adjustment

This section supplements the rules in the 'How to work' notices.

9.1 What is the liability of goods supplied onprescription?

The supply of goods dispensed by a registered chemist on the prescription of amedical practitioner is zero-rated under Group 12 of the Zero Rated Schedule of theVAT Act 1994. You can find further information in Notice 701/31 Health.

9.2 Why is an adjustment necessary?

Most Group 12 goods dispensed on prescription are standard-rated when purchasedby the chemist but zero-rated when supplied to the patient. A number of itemssupplied on prescription such as gluten free bread, are zero-rated at purchase so afurther adjustment is also necessary.

9.3 Does the adjustment apply to all the retailschemes?

No. If you are using a Point of Sale scheme you will be accounting for VAT at thecorrect rate. This is because you identify the correct rate of VAT at the time thesupply is made and no adjustment is necessary. Also, the Retail Chemist adjustmentcannot be used with Apportionment scheme (2).

Other retail schemes require the adjustments explained in paragraph 9.4 in order to

reduce the output tax which the scheme would otherwise produce.

If you use a direct calculation scheme, you must normally calculate Expected SellingPrices (ESPs) for your minority goods (see paragraphs 3.10 and 3.13). However, ifyour minority goods are standard-rated sales, you may calculate ESPs on the basisof the zero-rated goods received for resale if this would be simpler for your business.

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9.4 How does the adjustment work if I use theDirect Calculation schemes or Apportionmentscheme (1)?

Whether you are using the first or the second Direct Calculation scheme orApportionment scheme (1) you must make the following adjustment.


Step Procedure Result

1 Calculate your Daily Gross Takings (DGT) including the totalamount from your prescription charges and NHS cheque (lessthe value of any exempt supplies such as rota payments).

_______

2 Work out the output tax as explained in the Direct Calculationschemes notice or Apportionment schemes notice.

_______

3 Add up the payments received in the period for all Group 12goods - even if you did not supply the goods in the period.Remember your NHS cheque may include payments forsupplies not zero-rated under Group 12, but exempt orstandard-rated. Such amounts must not be included in thistotal.

_______

4 Estimate the value of goods included in step 3 that were zero-rated when you received them (see paragraph 9.5 below). ______

5 Subtract the total at step 4 from the total at step 3. _______

6 To work out the VAT you will have included in step 2 fromGroup 12 goods, multiply the total at step 5 by the VATfraction (1/6 for VAT at 20%).

_______

7 The output tax is the total at step 2 minus the notional outputtax at step 6.

_______

This is youroutput tax.

9.5 How do I estimate the percentage of zero-rated supplies?


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The adjustments set out at paragraph 9.4 require you to estimate a value forpayments for all Group 12 goods that were zero-rated when you received them (seesteps 3 and 4 of paragraph 9.4). You must be able to satisfy us if we visit you thatyour estimation gives a fair and reasonable valuation in any period. Whichever wayyou choose to make your estimation you must always:

base the estimation on a sample of your actual purchases for a representativeperiod. The representative period will depend on the nature of your business butyou must take account of seasonal fluctuations etc

retain details of the sample and

carry out a new estimation in each tax period. You must not use an estimationthat has been established by a previous owner of the business.

10. Special arrangements for florists

10.1 About this sectionThis section applies to florists or other retailers who are members of organisationssuch as Interflora, Teleflorist and Flowergram which facilitate the purchase anddelivery of flowers. It:

supplements the rules in the 'How to work' notices

replaces Notice 727/1 Retail florists, and

has the force of law under regulation 67 of the VAT Regulations1995 (SI 1995/2518).

10.2 Is an adjustment necessary for salesmade by florists?

Yes. The adjustments you make will depend on your retail scheme and whether ornot you are the member of an organisation such as one of those referred to inparagraph 10.1 who:

receives payment direct from the customer (the sendingmember) or

delivers the flowers and receives payment from the organisation(the executing member).

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10.3 How must I treat invoices issued by theagency?

The documents you receive from the agency may show the output tax which you

must pay to us. This is known as 'self-billed' output tax because the agency issuesthe invoice for the sales you make. You should check your agency documentationcarefully and bring any tax shown to account outside your retail scheme. You do thisby adding the self-billed output tax to any VAT calculated in accordance with yourretail scheme.

You should find more about self-billed output tax in your agency documentation. Youcan find further information in Notice 700 The VAT Guideor you can ask your localVAT Business Advice Centre.

10.4 How does the adjustment work?Depending on the scheme you use, you should follow the rules in the table below.

As sending member youmust

As executing memberyou must

Point of Sale include the paymentsreceived in your DailyGross Takings whenyou take the order. (No

adjustment isnecessary.)

not include paymentsreceived from theagency in your DailyGross Takings,

account for any tax dueoutside your retailscheme.

Apportionment (1) & (2) identify from agencydocumentation thevalue of the sales youmake as a sendingmember and accountfor any tax due outsideyour retail scheme,

not include the

payments for thesesales in your DailyGross Takings underthe retail schemecalculation.

account for any tax dueoutside your retailscheme on the basis ofthe agencydocumentation,

not include the agencypayments in your DailyGross Takings,

exclude the value offlowers from yourpurchase records if youuse the simple scheme- Apportionmentscheme (1),

adjust your ExpectedSelling Prices for thevalue of flowers sent asexecuting member and

accounted for outsidethe retail scheme if you

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use Apportionmentscheme (2).

Direct Calculation (1) &(2)

identify from agencydocumentation thevalue of the sales you

make as a sendingmember and accountfor any tax due onthose amounts outsideyour retail scheme,

not include thepayments for thesesales in your DailyGross Takings underthe retail schemecalculation.

account for any tax dueoutside your retailscheme on the basis of

the agencydocumentation,

not include agencypayments in your DailyGross Takings,

adjust your ExpectedSelling Prices for thevalue of flowers sent asexecuting member andaccounted for outsidethe retail scheme.

11. Comparison of the retail schemes

Pointofsale

Apportionment1

Apportionment2

Directcalculation1

Directcalculation2

Can I usethe schemefor

services?

Yes No No Only if theyare liable ata different

rate fromyourminoritysupplies

Only if theyare liable ata different

rate fromyourminoritysupplies

Can I usethe schemefor cateringsupplies?

Yes No No No No

Can I use

the schemefor goods Ihave madeor grownmyself?

Yes No Yes Yes Yes

Does theschemehave anannualturnover

limit?

Yes130m

Yes1m

Yes130m

Yes1m

Yes130m

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Will I haveto work outexpectedsellingprices?

No No Yes Yes Yes

Will I haveto carry outa stocktake?

No No YesWhen you startto use thescheme

No YesWhen youstart to usethe schemeandannuallythereafter

Will I haveto carry out

an annualadjustment?

No Yes NoBut you use a

rollingcalculation

No Yes

Remember, if your annual tax exclusive turnover from retail supplies is more than130 million you must agree a bespoke scheme with HMRC.

Your rights and obligations

Your Charterexplains what you can expect from us and what we can expect fromyou. For more information go to Your Charter.

Do you have any comments or suggestions?

If you have any comments or suggestions to make about this notice, please write to:

HM Revenue & CustomsCT & VAT Products and ProcessesVATAPPS Accounting Policy1NW Queens DockLiverpoolL74 4AA

Please note this address is not for general enquiries.

For your general enquiries please phone our VAT Helpline 0845 010 9000.

Putting things right

If you are not satisfied with our service, please let the person dealing with your affairsknow what is wrong. We will work as quickly as possible to put things right and settleyour complaint. If you are still unhappy, ask for your complaint to be referred to the

Complaints Manager.

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http://www.hmrc.gov.uk/charterhttp://www.hmrc.gov.uk/charter


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For more information about our complaints procedures go to www.hmrc.gov.uk andunder quick links select Complaints.

How we use your information

HM Revenue & Customs is a Data Controller under the Data Protection Act 1998.We hold information for the purposes specified in our notification to the InformationCommissioner, including the assessment and collection of tax and duties, thepayment of benefits and the prevention and detection of crime, and may use thisinformation for any of them.

We may get information about you from others, or we may give information to them.If we do, it will only be as the law permits to:

check the accuracy of information

prevent or detect crime

protect public funds.

We may check information we receive about you with what is already in our records.This can include information provided by you, as well as by others, such as othergovernment departments or agencies and overseas tax and customs authorities. Wewill not give information to anyone outside HM Revenue & Customs unless the lawpermits us to do so. For more information go to www.hmrc.gov.uk and look for DataProtection Act within the Search facility.

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