Commentary

V7.409 Cash flow improvement—annual accounting scheme: review payments on account

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.409 Cash flow improvement—annual accounting scheme: review payments on account

Part V7 Tax planning | Commentary

V7.409 Cash flow improvement—annual accounting scheme: review payments on account

The annual accounting scheme involves the completion of one annual VAT return. A feature of the scheme is that payments on account are made throughout the year and these payments are based on the tax paid on the previous year's annual return.

To avoid making payments on account that are too high, and could therefore create cash flow problems, don't forget that a scheme user can contact HMRC (initial contact should be the VAT Helpline on 0300 200 3700) and reduce these payments on account.

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