Commentary

V7.207 Compulsory withdrawal from the cash accounting scheme

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.207 Compulsory withdrawal from the cash accounting scheme

Part V7 Tax planning | Commentary

V7.207 Compulsory withdrawal from the cash accounting scheme

The legal basis of the cash accounting scheme is in VAT Regulations 1995 (SI 1995/2518), regs 56–65.

A business will be expelled from using the scheme in the following circumstances:

  1.  

    •     if it fails to meet the record-keeping requirements to enable calculations to be properly made for VAT purposes

  2.  

    •     if it has been convicted of an offence in connection with VAT since using the scheme or accepted an offer to compound proceedings in connection with a VAT offence

  3.  

    •     if it has been assessed for a VAT penalty involving dishonest conduct

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