VAT Annual Accounting Scheme

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Join or leave the scheme

How to join the Annual Accounting Scheme depends on whether you’re registered for VAT or not.

If you’re not registered for VAT

You should register for VAT and join the scheme at the same time. You’ll be told how to join the scheme when you register.

If you’re already registered for VAT

Apply to join the VAT Annual Accounting Scheme online or by post.

If your VAT turnover is £150,000 or less (excluding VAT)

You may be eligible to join the Flat Rate Scheme. With the Flat Rate Scheme, you pay a fixed rate of VAT to HM Revenue and Customs (HMRC).

If you want to join the Flat Rate Scheme you will need to do this separately. Apply to join the Flat Rate Scheme online or by post.

After you apply

You’ll get confirmation that you’ve joined the scheme:

  • sent to your VAT online account - if you applied online
  • in the post - if you applied using a paper form

How to leave

You can leave the scheme at any time, but you must leave if you’re no longer eligible to be in it.

To leave, write to HMRC and they will confirm when you can leave. From this date, you must account for your VAT in the usual way.

You have to wait 12 months before you can rejoin the scheme.

BT VAT
HM Revenue and Customs
BX9 1WR