Commentary

V7.212 Annual accounting scheme—introduction

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.212 Annual accounting scheme—introduction

Part V7 Tax planning | Commentary

Annual accounting scheme

V7.212 Annual accounting scheme—introduction

The aim of the annual accounting scheme is to reduce the administrative burden of VAT for a small business by only requiring the submission of one annual VAT return instead of four quarterly (or 12-monthly) returns.

A business can join the scheme if it expects that its annual taxable turnover (excluding VAT) will be £1,350,000 or less in the next 12 months.

The basic rules of the scheme are as follows:

  1.  

    •     a business submits one VAT return per year, usually coinciding with its financial year

  2.  

    •     the business gets an extra month to

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