Commentary

V2.194 Flat-rate scheme for farmers—the flat-rate addition

Part V2 Registration – deregistration

V2.194 Flat-rate scheme for farmers—the flat-rate addition

V2.194 Flat-rate scheme for farmers—the flat-rate addition

Calculation and charge of the flat rate addition

The consideration for:

  1.  

    •     any taxable supply (see V3.122)

  2.  

    •     made by a certified flat-rate farmer who is not a taxable person in the course or furtherance of the relevant part of his business (V2.191)

  3.  

    •     made to a taxable person (see V2.101)

is treated as including an amount called the flat-rate addition which is equal to 4%1 of the sum, which with the addition of the flat-rate addition, is equal to the consideration for the supply2. In other words, the flat-rate addition is equal to

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