V3.561 Choice of scheme

Notice 7271 gives general guidance regarding the choice of scheme for a particular business. It is necessary to add only four general observations to HMRC's advice.

Firstly, a retailer must ensure that he meets the conditions attached to a standard scheme before deciding to adopt it.

Secondly, a person should be quite certain in his own mind that he is capable of operating the scheme of his choice—some schemes require considerable administrative effort beyond the resources of many small retailers.

Thirdly, certain schemes are less accurate than others and may thus overstate the true tax element of supplies made.


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