Milk Sales Income

This discussion addresses a client with substantial milk packet sales of £4,200,000 in FY 20-21. The core questions revolve around whether to declare this income in ITR 4 using the 8% presumptive taxation scheme, if an audit is required, and if GST registration is necessary. Advice suggests that if sales are on a commission or service charge basis, the 8% presumptive tax may not apply, necessitating a P&L account. Generally, an audit is not required for turnovers below £1 crore, but the nature of the business (e.g., commission agent) could affect the applicable ITR form.