Commentary

V7.215 Annual accounting scheme—potential problems

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.215 Annual accounting scheme—potential problems

Part V7 Tax planning | Commentary

V7.215 Annual accounting scheme—potential problems

The scheme has not been as popular as originally anticipated by HMRC when it was first introduced. The following are potential problems of which advisers need to be aware.

  1.  

    •     Payments on account could be too high – If a business identifies at any time that its payments on account are too high, it can make an application to HMRC to reduce them. This request should be made to the Annual Accounting Registration Unit. In reality, however, this effectively means that a business needs to calculate its VAT liability anyway (in order to confirm the

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