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VAT: agricultural flat-rate scheme

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VAT Notice 700/46 has been updated to reflect the new conditions for entry into the agricultural flat rate scheme: farmers must have annual turnover from farming activities below £150,000 to be able to join the scheme but can then remain in the scheme until their annual turnover is more than £230,000. Farmers who are members of the scheme must tell HMRC when they no longer meet the eligibility criteria and need to be deregistered. This must be done within 30 days of the certification anniversary when they become ineligible and notification must be sent in writing to the VAT registration service.

The new conditions were introduced into regs 204, 206 and 206A of the VAT Regulations, SI 1995/2518 (by the VAT (Amendment) Regulations, SI 2020/1384) and apply from 1 January 2021.

Issue: 1515
Categories: News