Commentary

V7.501 The TOMS and other VAT accounting schemes

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.501 The TOMS and other VAT accounting schemes

Part V7 Tax planning | Commentary

V7.501 The TOMS and other VAT accounting schemes

Because of the special tax point rules that apply to the TOMS, a business cannot use the cash accounting scheme for any supplies falling within the TOMS.

The TOMS can be used with the annual accounting scheme, providing the business meets the eligibility criteria for the annual accounting scheme explained in V7.212. If a business is using the annual accounting scheme it should include the figures from the annual TOMS calculation on the VAT return for the year in which the supplies were made – see Example 11.

Example 11

Fast Tours from Example 1

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