Commentary

V7.208 Rules to apply when a business withdraws from the cash accounting scheme

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.208 Rules to apply when a business withdraws from the cash accounting scheme

Part V7 Tax planning | Commentary

V7.208 Rules to apply when a business withdraws from the cash accounting scheme

Unless special transitional rules can be applied, a business must account for VAT as follows on the final return it submits when it is within the cash accounting scheme:

  1.  

    •     all VAT that it would have been required to pay to HMRC during the time the scheme was operated if it had not been operating the scheme, minus

  2.  

    •     all VAT accounted for and paid to HMRC in accordance with the scheme, subject to any adjustments for input tax credit

In effect, the above conditions mean that at

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