Commentary

V7.194 Cash accounting scheme—introduction

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.194 Cash accounting scheme—introduction

Part V7 Tax planning | Commentary

Cash accounting scheme

V7.194 Cash accounting scheme—introduction

An intention of government policy has always been to try and simplify VAT procedures for small businesses. The cash accounting scheme is one such measure, allowing certain businesses to pay output tax when they receive payment from customers, rather than, under the normal VAT rules, the (usually) earlier date when a sales invoice is raised. In a climate where customers are taking longer to pay their bills, this can be a very worthwhile benefit.

The scheme was extended on 1 April 2007, so that it can now be used by any business

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