Commentary

V7.198 Adjustments when a business first starts to use the cash accounting scheme

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.198 Adjustments when a business first starts to use the cash accounting scheme

Part V7 Tax planning | Commentary

V7.198 Adjustments when a business first starts to use the cash accounting scheme

If an existing business decides to use the scheme, a key issue will be to ensure that output tax is not paid twice on the same supplies, and that input tax claims are likewise not duplicated.

For example, if a sales invoice is raised on 31 March, and paid in April, then a business on calendar VAT quarters and normal VAT accounting will pay the output tax on the return to 31 March . If a decision is then made to adopt cash accounting with effect from 1

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