This news release is issued to draw attention to information released earlier today for catering businesses using retail schemes.
Catering businesses using retail schemes may have to alter their accounting systems for the period 15 July 2020 to 12 January 2021.
If you have a bespoke retail scheme agreement, you should review it and if you think an alteration is needed please contact the Advice Centre for further advice on +44 1624 648130 or at customs@gov.im
To find out more about the catering adaption, please read section 7 of in Notice 727.
Caterers using the direct calculation scheme
If all your sales are at the reduced rate then the reduced rate will apply to your daily gross takings during the period.
If you have mixed supplies and your till is not programmed to account for different rates then you may adopt the principles of the direct calculation scheme, if appropriate, to the standard rated goods. Otherwise you should make a fair and reasonable apportionment and retain your workings as part of your business records.
