VAT - cash accounting - threshold

VAT - cash accounting - threshold

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I have a client who has always been under the cash accounting limit. In addition to the company's normal business it has recently branched out to do work on new residentail buildings site preparation.

The profit margin on these assignments is not high but the amounts received can be large. For cash accounting do these zero-rated supplies need to be considered or is it only the taxable supplies that have had VAT charged that need to be taken into account?

many thanks
Aidan Costello

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By aidan.costello
20th Sep 2006 12:05

cash accounting
Thanks Euan - as I feared. Will make the VAT returns much more complicated and probably disadvabtageous for the company as it has a lot of slow payers.

Some of the suppliers are on self -billing so they pay without VAT on application rather than on issue of an invoice by the client.

Will need to get to the bottom of this.

A shame - I much prefer cash accounting!

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Euan's picture
By Euan MacLennan
19th Sep 2006 13:42

All taxable supplies
..., including zero-rated, need to be included.

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