Increase to threshold for bespoke retail schemes

Historically, retail businesses with retail turnover above £100 million have had to agree a bespoke retail scheme to calculate the VAT payable to HMRC. From 1 April 2009, this threshold will increase to £130 million.

Baker Tilly analysis

Retail businesses with retail turnover less than £100 million have access to five schemes to calculate the VAT they must pay to HMRC. Businesses with turnover above £100 million have had to agree a bespoke method with HMRC or apply the normal VAT accounting rules. From 1 April 2009 businesses with turnover between £100 and £130 million will be spared the cost and administrative burden of agreeing a bespoke method as they will still be able to use one of the five published retail schemes.