A client is shortly going to reach the £1.6m turnover threshold for cash accounting and is going to have to change to accruals. This means he is going to have a potentially very large VAT bill once he switches, as he normally works on about 60 days credit with both customers and suppliers. Is there anything he can do, or does he simply have to take the hit, which will significantly affect his cashflow?
Any tips would be gratefully received!
Thanks.