VAT – Cash accounting

Were you aware that the threshold for the this VAT scheme increased to £1.35m? Recent research has shown that many business owners still thought the limit to be £660,000 and were therefore missing out on the chance to consider this option for their business. You can use this scheme if you estimate that your turnover during the next tax year will be no more than £1.35m. This scheme works with your cashflow, as you do not need to pay VAT until your customer has paid you. If your customer never pays you, you never have to pay the VAT. For more information, please see the HMRC web site