F1PART VIIAFLAT-RATE SCHEME FOR SMALL BUSINESSES

Annotations:
Amendments (Textual)

Withdrawal from the scheme55M

1

Subject to paragraph (2) below, a flat-rate trader ceases to be eligible to be authorised to account for VAT in accordance with the scheme where—

a

at any anniversary of his start date, the total value of his income in the period of one year then ending is more than F2£225,000,

b

there are reasonable grounds to believe that the total value of his income in the period of 30 days then beginning will exceed F2£225,000,

c

he becomes a tour operator,

d

he intends to acquire, construct or otherwise obtain a capital item within the meaning of regulation 112(2),

e

he opts to account for the VAT chargeable on a supply made by him by reference to the profit margin on the supply, in accordance with the provisions of any Order made under section 50A of the Act,

f

he becomes—

i

eligible to be registered for VAT in the name of a group under section 43A of the Act,

ii

registered for VAT in the name of a division under section 46(1) of the Act, or

iii

associated with another person,

g

he opts to withdraw from the scheme, or

h

his authorisation is terminated in accordance with regulation 55P below.

2

A flat-rate trader does not cease to be eligible to be authorised by virtue of paragraph (1)(a) above if the Commissioners are satisfied that the total value of his income in the period of one year then beginning will not exceed F3£187,500.

3

In determining the value of a flat-rate trader’s income for the purposes of paragraphs (1)(a) and (b) and (2) above, any supply of goods or services that are capital assets of the business in the course or furtherance of which they are supplied, shall be disregarded.