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Official guidance
VAT Flat Rate Scheme

FRS5000 · Addressing risks and assurance

  • FRS5100 · What are the key risks of the scheme?
  • FRS5200 · How does the application form minimise risk?
  • FRS5300 · How should assurance staff approach FRS businesses?
  • FRS5400 · What if a tax assessment is appropriate?
  • FRS5500 · Are FRS businesses liable for misdeclaration penalties?
  1. Addressing risks and assurance: Contents
  2. Addressing risks and assurance: What if a tax assessment is appropriate?

FRS5400 | Addressing risks and assurance: What if a tax assessment is appropriate?

From HM Revenue & Customs · VAT Flat Rate Scheme

The true tax for the period will derive from the proper application of the correct flat rate percentage to the business’ total FRS income.

This means that where the business was eligible and authorised to use FRS in the period to be assessed, your assessment must be based on the methodology of the flat rate scheme.

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