Commentary

V7.411 Cash flow improvement—planning points to consider

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.411 Cash flow improvement—planning points to consider

Part V7 Tax planning | Commentary

V7.411 Cash flow improvement—planning points to consider

The following planning points should be given consideration.

  1.  

    •     Consider the potential benefits to clients of adopting the cash accounting scheme (cash flow benefits) to improve cash flow.

  2.  

    •     A tax point (time when VAT is due on a return) can be delayed in some cases by raising a document such as an application for payment, fee note or payment request, ie any document other than a sales invoice. This could produce important cash flow benefits for the business by delaying the payment of output tax until perhaps the next VAT period.

  3.  

    •    

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