Coming off flat rate VAT

Mark 99
Mark 99 Registered Posts: 14 New contributor ?
Does anyone have any thoughts on the following?

I look after a little company which left the flat rate VAT scheme at the end of March. When the company was on the flat rate scheme, VAT was worked out on a cash basis rather than accruals basis, and, now that they are back on the conventional scheme, they still want it to be cash based. Am I right in thinking that the cut off for invoices, both purchases and sales, is therefore determined by the date of cash paid or received? That is to say, any purchase invoices, received in March but paid in April, will go into the VAT calculation for the quarter April to June, and similarly any March sales invoices for which payment was received in April will also go into the VAT calculation for this quarter.

I think I've got this right, but I'll be pleased if anyone has any comments.



  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    That sounds correct to me. :thumbup1:
  • JJH1969
    JJH1969 Registered Posts: 110 ? ? ?
    VAT notice 731 covers this but it depends on the format of the receipt/payment.
    Cash Date received money
    giro, standing order,DD Date bank account credited
    Credit/debit card Date make out sales voucher (not when you receive the money from card provider)
    Cash Date you pay the money
    Giro, standing order, DD Date bank account debited
    Credit/debit card Date sales voucher made out
    Cheque Date you send the cheque or date of the cheque whichever is later

  • Mark 99
    Mark 99 Registered Posts: 14 New contributor ?

    Thank you for your help and reasuarnce on this. Nearly all payments are in or out of the bank a/c, so it's fairly easy to determine when they were dated.

    Kind regards
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