Policy paper

Draft Legislation: VAT: tackling aggressive abuse of the Flat Rate Scheme

This draft legislation explains VAT, tackling aggressive abuse of the Flat Rate Scheme.

• From: HM Revenue & Customs
• Published: 5 December 2016

Documents

VAT: tackling aggressive abuse of the Flat Rate Scheme

PDF, 221 KB, 3 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Explanatory memorandum to VAT: tackling aggressive abuse of the Flat Rate Scheme

PDF, 128 KB, 4 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

The measure will introduce a new 16.5% FRS rate for businesses with limited costs, such as many labour only businesses. This will prevent abuse and make the FRS fairer. This will reduce the incentive for firms and agencies to move employees to self-employment to exploit VAT simplification aimed at small businesses.

A tax information and impact note has also been published.

Published 5 December 2016