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.
Farmer credit notes and broiler chicken services
During the production of broiler chickens, a farmer credit note can no longer be issued by a broiler chicken farmer engaged in the supply of any agricultural service of:
- stock minding
- rearing
- and
- fattening.
This follows their exclusion from the flat-rate addition and is effective from 1 September 2025.
Further guidance contains more detailed information on the Value-Added Tax (VAT) treatment of broiler chicken services.
Next: Issuing a settlement voucher