Farmers and the Flat-rate Scheme

Flat-rate farmer credit note requirements

In certain circumstances, flat-rate farmers are obliged to issue a farmer credit note. However, the flat-rate farmer may fail to do so within the relevant time limit. The farmer is liable for the amount of the flat-rate addition that should have been stated on the note. 

A flat-rate farmer is also liable if they issue an incorrect farmer credit note. In such cases, the farmer credit note states a lesser sum of flat-rate addition than is appropriate to the reduction in consideration or discount. The farmer issuing the credit note is liable for the amount of the deficiency of the flat-rate addition.

In both cases the flat-rate farmer is treated as an accountable person. This is for the purposes of payment of the amount due. The farmer is also liable to penalties.

Next: Issuing a settlement voucher