VATREG03600 | Registration - general: specific staggers and non-standard tax periods

Regulation 25(1) of the Value Added Tax Regulations 1995 provides that a registered person must make VAT returns for prescribed accounting periods, which are ordinarily quarterly.

However, Regulation 25 also gives the Commissioners discretion to allow or direct returns to be made for periods other than quarterly. This includes, in particular:

• requiring or permitting monthly returns; and

• specifying alternative accounting periods, including non-standard tax periods.

A business’s return stagger is normally set at the point of registration, and may subsequently be amended (for example, through the VAT View and Change service).

Use of discretion – stagger manipulation

The discretionary powers in Regulation 25 may be used to combat stagger arrangements that obtain a cash-flow advantage or facilitate non-compliance or fraud.

Guidance on the use of this discretion in cases of stagger manipulation is set out at VATAC5000 (External users can access this guidance at: http://www.hmrc.gov.uk/manuals/vatacmanual/VATAC5000.htm).