I have just taken over a client from another book keeper, who has been using Sage to be MTD complient, but is entering all payments/receipts as Bank Payments/Receipts, with no Customers/Suppliers set up. The business runs under cash based VAT, so all entries are made under the payment date, not the tax point. Is this ok? The business owner feels very strongly that it should continue as such, as he likes a Monthly report of the P&L to reconcile with his bank statement. I am not comfortable with ignoring the tax points on the invoices as such, although as he is operating under Cash based VAT I can see there is potentially no material impact?? But I don't want it to be an issue if there is an inspection of the accounts. Any advice appreciated, thank you, they haven't had an inspection since using pen and paper system.