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VAT Scheme for Retail Shop

24/04/2019 08:14:38
Good Morning

I am in the process of buying a retail shop with a turnover of £350,000 per annum.

The shop will be in my name as sole proprietor / sole trader.

Please can someone help me which VAT Scheme should I register to?

VAT Retail and VAT Standard scheme currently I can think of? but any help on this would be greatly appreciated..

TiA

Jamshed
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Re:VAT Scheme for Retail Shop

24/04/2019 11:20:27
Hi,

Thanks for your question.

HMRC cannot advise or recommend which VAT scheme a business should use.

Please see the following links for guidance on the conditions of using different schemes, you can speak with your accountant or financial adviser if you are unsure which scheme would be most applicable to suit your business needs.

You will not be able to join the Flat Rate Scheme as your turnover must be £150,000 or less.

Cash accounting:

Cash Accounting Scheme (VAT Notice 731)

Annual accounting:

Annual accounting (VAT Notice 732)

Retail schemes:

Retail schemes (VAT Notice 727)

Margin schemes:

The Margin and Global Accounting Scheme - VAT Notice 718
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VAT Scheme for Retail Shop

25/04/2019 16:00:00
Usually the standard scheme would be used unless it's difficult to work out what VAT you have charged on your sales. That's where the retail scheme simplifies things.

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