Section 55H — Value Added Tax Regulations 1995: Appropriate percentage

Appropriate percentage 55H 1 Subject to regulation 55KA, the appropriate percentage to be applied by a flat-rate trader for any prescribed accounting period, or part of a prescribed accounting period (as the case may be), shall be determined in accordance with this regulation and regulations 55JB and 55K.

2 For any prescribed accounting period—

a not falling within (b) , the appropriate percentage shall be that specified in the Table for the category of business that he is expected, on the first day of the period , on reasonable grounds, to carry on in that period;

b current at his start date but not beginning with his start date, the appropriate percentage shall be that specified in the Table for the category of business that he is expected, at his start date, on reasonable grounds, to carry on in the remainder of the period;

c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 Except that, where a relevant date other than his start date occurs on a day other than the first day of a prescribed accounting period, the following rules shall apply for the remainder of that prescribed accounting period—

a for the remaining portion, the appropriate percentage shall be that specified in the Table for the category of business that he is expected, at the relevant date, on reasonable grounds, to carry on in that period;

b “remaining portion” means that part of the prescribed accounting period in which the relevant date occurs—

i starting with the relevant date, and ii ending on the last day of that prescribed accounting period;

c the appropriate percentage specified in sub-paragraph (a) shall be applied to his relevant turnover in the remaining portion described;

d if the rules set out in paragraphs (a) to (c) apply and then another relevant date occurs in the same prescribed accounting period, then—

i the existing remaining portion ends on the day before the latest relevant date, ii another remaining portion begins on the latest relevant date, and iii the rules in paragraph (a) to (c) shall be applied again in respect of the latest remaining portion.