VRS3355 - Fundamentals of the retail schemes: Mixtures of schemes: Acceptable mixtures of schemes

Normally, a retailer will use a single retail scheme for the whole of his business. Retailers involved in supplying both goods and services may need to use more than one scheme. In addition, retailers with a number of separate business locations or different types of shops may prefer to use either a number of different schemes in each location or even the same scheme. This is provided for in law by virtue of Regulation 69 of the VAT Regulations 1995, which enables HMRC to allow more than one scheme to be used:

69. No retailer may at any time use more than one scheme except as provided for in any notice or as the Commissioners may otherwise allow.

Notice 727 Retail schemes and the associated

detail which schemes may be used by a retailer in particular circumstances, including those with businesses at separate locations. Any retail scheme can also be combined with normal accounting.

The following are acceptable combinations:

Point of sale scheme may be used with any of the following:

  • direct calculation scheme 1
  • direct calculation scheme 2
  • direct calculation scheme 1 and normal accounting
  • direct calculation scheme 2 and normal accounting
  • apportionment scheme 1
  • apportionment scheme 2
  • apportionment scheme 1 and normal accounting
  • apportionment scheme 2 and normal accounting
  • normal accounting

Direct calculation scheme 1 - normal accounting

Direct calculation scheme 2 - normal accounting

Apportionment scheme 1 - normal accounting

Apportionment scheme 2 - normal accounting