Higher limit for bespoke retail schemes
Customs has increased the turnover limit for compulsory negotiation of bespoke retail schemes from £10m to £100m a year.
Bespoke retail schemes became a requirement for larger retailers almost two years ago. They are tailored to meet the particular requirements of a business and are usually adapted from one of the standard retail schemes.
The idea for bespoke schemes came from a working party of Customs and business representatives and was aimed at promoting greater certainty in the calculation of output tax by larger retailers.
Bespoke schemes will still be available to the largest retailers. And the option of agreeing one will continue to be open to any retailer ‘if the published retail schemes are impracticable or do not produce a fair and reasonable result’. The new changes are designed to make the published schemes open to more retailers, Customs said.