Commentary

V7.211 Flat rate scheme and annual accounting scheme

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.211 Flat rate scheme and annual accounting scheme

Part V7 Tax planning | Commentary

V7.211 Flat rate scheme and annual accounting scheme

A business cannot use the cash accounting scheme and flat rate scheme at the same time. However, a flat rate scheme user can instead account for VAT by adopting what is known as the 'cash-based turnover' method. This method gives the same outcome as the cash accounting scheme, ie no tax is declared on a VAT return until payment has been made by a customer. Full details of the flat rate scheme are considered in V2.199B–V2.199D and V7.224–V7.232A.

However, there is no problem with a business using the cash accounting scheme and annual

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