Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the judgment of Shields and Sons Partnership v The Commissioners for HM Revenue and Customs [2017] UKUT 0504, whether he plans to reinstate farmers that have been excluded from the flat rate VAT Scheme as a result of obtaining a greater benefit from that scheme than a VAT registration.
The Agricultural Flat Rate Scheme (AFRS) is intended for use by small agricultural businesses and was designed to provide relief for those businesses facing administrative burdens from standard VAT obligations.
Following the judgement of the Court of Justice of the European Union (CJEU) and the Upper Tribunal, Shields & Sons Partnership was reinstated to the AFRS. Other agricultural businesses removed from the scheme did not appeal HMRC’s decision and subsequent appeals are out of time. These businesses will not be automatically reinstated to the scheme.