Other Schemes And Arrangements

There are other ‘Special schemes‘  – generally for specific industries.  There are other arrangements for Group companies, which simply requires adding together the 9 figures in the VAT return. This is dealt with in Prelude Desktop.  The Annual accounting scheme allows just one return to be completed per year – all other aspects of this scheme are the same as the standard invoice-based scheme. Under this scheme 9 advanced payments are made – based on the previous year’s return (you can apply to modify the payment amount if your turnover will be significantly different for the current year).

Another scheme worth mentioning is the second-hand vehicles scheme, which is broadly similar to the margin scheme outlined in a separate article but specifically requires a stock book to be maintained and the treatment of costs is slightly different.  We have no plans to introduce this unless there is a demand.

The global accounting scheme is a simplified way of accounting for VAT on sales of most margin scheme goods. It is designed for use by businesses that deal in large quantities of low-value goods and might otherwise find the record-keeping requirements onerous. There are exceptions and sales of over £500 can not use this scheme. In this scheme the VAT is calculated at the end of each quarter on the total sales and total purchases of eligible goods and the VAT due calculated on the margin, as in the standard Margin Scheme.