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

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

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

Married couple’s allowance

Married couple’s allowanceThe married couple’s allowance (MCA) is only available if one of the two spouses or civil partners was born before 6 April 1935. This means that one member of the couple must be at least 89 years old on 5 April 2024 to qualify for an allowance in the 2023/24 tax year.There

14 Jul 2020 12:13 | Produced by Tolley Read more

Owner-Managed Businesses

Capital allowances on cars

Capital allowances on carsSummary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions of 50g/km and below 18%CAA 2001, s 104AASecondhand cars with CO2

14 Jul 2020 11:08 | Produced by Tolley Read more

Autumn Budget 2024

��˾��ҹ��