½Û×ÓÊÓƵ

Overview of the annual accounting scheme

Regulations made under VATA 1994, s 25(1) and Sch 11 para 2(1) provide that HMRC may authorise a taxable person to account for tax under a scheme which modifies¹:

1. Ìý

   •ÌýÌýÌýÌý the length of the period in connection with which VAT returns are furnished (see V5.102)

2. Ìý

   •ÌýÌýÌýÌý the time limit within which VAT returns must be provided (see V5.103)

3. Ìý

   •ÌýÌýÌýÌý the time and manner in which tax must be paid (V5.108A)

VAT returns and payments under annual accounting

The Annual Accounting Scheme allows eligible registered persons to submit a single VAT return which covers a 'current accounting year'. This is a period of 12 months starting at the date of authorisation or the most recent anniversary of this. A current accounting year is a prescribed accounting period². Interim payments must be made on a monthly or quarterly basis (see V5.108A).

Benefits of the annual accounting scheme

The main benefit of the scheme, therefore, is