Commentary

V7.203 Cash accounting scheme—completing VAT returns

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.203 Cash accounting scheme—completing VAT returns

Part V7 Tax planning | Commentary

V7.203 Cash accounting scheme—completing VAT returns

One of the main aims of the cash accounting scheme is to simplify the administrative burden of VAT for small businesses – as well as the other two main benefits of automatic bad debt relief and a delay in paying output tax until payment is received from a customer.

For a small business, the record keeping process is simplified by the cash accounting scheme because a cash book system can be used as the main record, avoiding the need for a sales day book and purchase day book to be maintained as well.

In terms of

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