VATAAS2100 - Entering the scheme: Conditions of entry

Businesses with an expected turnover of up to £1,350,000 can use the scheme from the date that they register for VAT.

The conditions of entry are governed by VAT Regulations 1995, Regulation 52, which says:

52-(1) A taxable person shall be eligible to apply for authorisation under regulation 50(1) if-

(a) Omitted under SI 2006/587;

(b) he has reasonable grounds for believing that the value of taxable supplies made or to be made by him in the period of 12 months beginning on the date of his application for authorisation will not exceed £1,350,000;

(c) his registration is not in the name of a group under section 43(1) of the Act;

(d) his registration is not in the name of a division under section 46(1) of the Act; and

(e) he has not in the 12 months preceding the date of his application for authorisation ceased to operate the scheme.

(1A) Omitted under SI 2006/587

(2) The Commissioners may refuse to authorise a person under regulation 50(1) where they consider it necessary to do so for the protection of the revenue.

Although a decision refusing entry to the Annual Accounting Scheme is not appealable, the business may ask HMRC to reconsider the information used to arrive at such a decision.