Suppose my client gives cheques to supplier back in September 2011 and most of them haven't been presented to the bank by 31st March 2012. It is normal for supplier to leave it months before presenting cheques and occasionally for the cheques to be cancelled and reissued.
When calculating March VAT return (cash accounting basis) should I delete these cheques as the invoices in question have not been "paid"? This will clearly increase the amount of VAT now due.
When is a cheque not "viable" for this purpose?