Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Incorrect use of flat rate scheme

22 January 2018
Issue: 4632 / Categories: Tax cases

David James Smith (TC6285)

Good character statement from HMRC need not be produced

The taxpayer was a freelance journalist. He registered to use the VAT flat rate scheme (FRS) but operated it incorrectly by calculating the rate on the net turnover instead of using the VAT inclusive figure. The additional VAT due was £2 868 and HMRC issued assessments to recover it.

The taxpayer appealed to the First-tier Tribunal. He contended that the FRS was poorly designed HMRC misrepresented the scheme to customers the letters to him from HMRC were gobbledygook and an HMRC officer had told him that the department knew there were problems with the scheme.

He applied to the tribunal for a number of documents from HMRC including all internal and external communications files and records relating to customers and internal concerns that had arisen over purported flaws in the FRS. He also required production of...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon