Commentary

V7.206 Withdrawal from the cash accounting scheme due to turnover limit being exceeded

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.206 Withdrawal from the cash accounting scheme due to turnover limit being exceeded

Part V7 Tax planning | Commentary

V7.206 Withdrawal from the cash accounting scheme due to turnover limit being exceeded

Although the entry limit for a business is an annual taxable turnover of £1,350,000, a business does not have to withdraw from the scheme until the value of its taxable supplies in the previous 12 months has exceeded £1,600,000 (both figures include VAT). The only disadvantage is that the exit calculation must include the disposals of any stock or capital assets.

A business using the cash accounting scheme should monitor the level of its taxable supplies regularly as the test applies on a rolling 12-monthly basis. If taxable

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