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vat cash accounting scheme

vat cash accounting scheme

My client formed a new company Feb 2013 . Registered for vat 01 Jan 2014 and used cash accounting scheme, but after 6 months they already gone over the threshold 1.6millian. Can they carry in use the cash accounting scheme for another 6 months until the financial year ended Feb 2015? Or . Do they need to cease the scheme the end of august 2014 ?

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19th Feb 2016 19:37

@ overpaidtax [OP]

I must confess to being confused by the [clearly incorrect] dates in your question, and I cannot readily determine what the correct dates are supposed to be.  

Here is a link to the relevant VAT Notice:-

https://www.gov.uk/government/publications/vat-notice-731-cash-accounting/vat-notice-731-cash-accounting.

I recommend your reading the guidance in general, and especially scrolling down to 2.5 - therein you will find that the relevant leaving date is the end of the relevant VAT Quarter.

Again somewhat hampered by the incorrect dates, I suggest your confirming that the client was indeed entitled to operate the scheme in the first instance, and that it has retained evidence of its having made a valid forecast of its turnover when commencing to use the scheme. 

Basil. 

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