The Value Added Tax (Annual Accounting) (Amendment) Regulations 1991

Statutory Instruments

1991 No. 532

VALUE ADDED TAX

The Value Added Tax (Annual Accounting) (Amendment) Regulations 1991

Made

28th February 1991

Laid before the House of Commons

19th March 1991

Coming into force

9th April 1991

The Commissioners of Customs and Excise, in exercise of the powers conferred upon them by sections 14(1) and 48(1) of, and paragraph 2(1) of Schedule 7 to, the Value Added Tax Act 1983(1) and of all other powers enabling them in that behalf, hereby make the following Regulations:

1.  These Regulations may be cited as the Value Added Tax (Annual Accounting) (Amendment) Regulations 1991 and shall come into force on 9th April 1991.

2.  The Value Added Tax (Annual Accounting) Regulations 1988(2) shall be amended in accordance with the following provisions of these Regulations.

3.  In sub-paragraph (a) of regulation 3, for the words “current account year” there shall be substituted the words “current accounting year”.

4.  In—

(a) sub-paragraph (1)(b) of regulation 4, and

(b) sub-paragraphs (2)(a) and (2)(b) of regulation 5, for

“£250,000” there shall be substituted “£300,000”.

5.  In regulation 4(1)(c) there shall be deleted the words from “, and has paid” to “Finance Act 1985”.

6.  In regulation 5–

(a) in paragraph (2), for the words from “shall” to “years” there shall be substituted the words “may remain in the scheme”, and

(b) in sub-paragraph (2)(c) there shall be deleted the word “earlier”.

7.  In paragraph (1) of regulation 8 after sub-paragraph (e) there shall be inserted the following–

• “; or

  (f)

  an authorised person has not, in relation to a return made by him prior to authorisation, paid to the Commissioners all such sums shown as due thereon; or

  (g)

  an authorised person has not, in relation to any assessment made either under Schedule 7 to the Act or under section 21 of the Finance Act 1985(3), paid to the Commissioners all such sums shown as due thereon”.

Diana Seammen

Commissioner of Customs and Excise

New King’s Beam House,

22 Upper Ground,

LONDON,

SE1 9PJ

28th February 1991

Explanatory Note

(This note is not part of the Regulatons)

These Regulations which come into force on 9th April 1991 amend the Value Added Tax (Annual Accounting) Regulations 1988 (S.I. 1988/886) (“the principal Regulations”). The principal Regulations regulate the annual accounting scheme for accounting for value added tax.

The turnover limit for membership of the scheme, contained in regulations 4(1)(b), 5(2)(a) and 5(2)(b), is increased from £250,000 to £300,000. One of the rules for admission to the scheme, contained in regulation 4(1)(c) of the principal Regulations, is altered. The requirement to remain in the scheme for a minimum of two years contained in regulation 5(2) of the principal Regulations is removed. Two new grounds for expulsion from the scheme are added to the list contained in regulation 8(1) of the principal Regulations.

(1)

1983 c. 55; section 14(1) was amended by section 11 of the Finance Act 1987 (c. 16), section 48(1) defines “the Commissioners” as meaning the Commissioners of Customs and Excise and “regulations” as meaning regulations made by the Commissioners.

(2)

S.I. 1988/886.

(3)

1985 c. 54.