Operating the cash accounting scheme

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides an overview of how to operate the cash accounting scheme. This note should be read in conjunction with the Cash Accounting Scheme ― eligibility, joining and leaving the scheme guidance.

Starting to use the cash accounting scheme

It should be noted that a business cannot retrospectively apply the cash accounting scheme. If a business is already VAT registered and is using normal VAT accounting methods, it can elect to use cash accounting from the start of a new VAT return period. The business must ensure that it meets all of the relevant conditions before commencing with using the scheme. Please see the Cash Accounting Scheme ― eligibility, joining and leaving the scheme guidance note for more information on the scheme requirements.

Businesses wishing to use the scheme must identify and separate supplies that have already been made or received, where VAT has already been accounted for or recovered on. Only supplies made or received where no VAT has been accounted for should be included in the cash accounting scheme

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more

Personal Tax

Self assessment ― amendments and corrections

Self assessment ― amendments and correctionsOnce a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the

14 Jul 2020 13:37 | Produced by Tolley Read more

Employment Tax

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more

UU��ֱ��