»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp policy background explained in FRS2000 determines the general approach to be adopted when dealing with small businesses. Minor and isolated infractions of the scheme rules should be dealt with leniently. However, the law contains strong powers to counter avoidance and abuse and these should be used where either of these factors is present.

»Ê¹ÚÌåÓýapp key purpose of assurance is to obtain a view of the credibility of the businessâ€� declarations. »Ê¹ÚÌåÓýapp approach to FRS businesses should be no different in principle but sift teams and assurance staff should note:

• »Ê¹ÚÌåÓýappre is a legend on the R2 screen in VISION showing when a business joined the scheme and also a period indicator in the period records.
• »Ê¹ÚÌåÓýapp businessâ€� returns will be calculated differently from those using normal VAT accounting, specifically in boxes 1, 4, 6 and 7 of the VAT return.
• »Ê¹ÚÌåÓýappre will not be routine claims for input tax. Claims that do arise will be clearly signalled in box 4 of the VAT return and should be evidenced in the normal way.
• »Ê¹ÚÌåÓýapp absence of input tax claims does not reduce the value of purchase records as indicators of sales credibility.
• »Ê¹ÚÌåÓýappre will be a need for additional checks on the eligibility of the business to use FRS.