Commentary

V7.209 Cash accounting scheme—transitional rules

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.209 Cash accounting scheme—transitional rules

Part V7 Tax planning | Commentary

V7.209 Cash accounting scheme—transitional rules

The rules discussed at V7.208 could create a large and unexpected VAT bill for a business on the final return it submits when it is within the cash accounting scheme.

In order to alleviate the effect of this large payment, special transitional rules are available for businesses that leave the scheme either because of the turnover limits or because they choose to withdraw on a voluntary basis. The transitional rules are not available to any business where use of the scheme has been withdrawn by HMRC because of non-compliance issues. There is also an exclusion from

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