Value Added Tax Act 1994 Schedule 11A paragraph 7

Exemptions from duty to notify under paragraph 6

Paragraph 7 sets out the circumstances in which a taxable person is exempt from the obligation to notify HMRC of a VAT avoidance scheme under paragraph 6, based on turnover thresholds.

• Businesses whose annual turnover (taxable and exempt supplies, excluding VAT) falls below specified thresholds are exempt from the duty to notify HMRC of VAT avoidance schemes under paragraph 6.
• The minimum turnover threshold is £600,000 for designated schemes and £10,000,000 for other notifiable schemes, and both an annual test (Condition A) and a shorter accounting period test (Condition B) must be met.
• Where a taxable person is part of a group of undertakings, the turnover conditions must be satisfied not only by that person but also by every other group undertaking.
• The Treasury has the power to change the turnover thresholds by order, and the exemption is subject to the further provisions of paragraph 8.