Cash accounting scheme
You'll learn what the cash accounting scheme is and when your business can use it for VAT purposes. This lesson covers the eligibility criteria (taxable supplies up to £1.35 million), how the scheme works (VAT is accounted for when cash is paid or received, not when invoices are issued), and its key advantages
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In this lesson
- 0:00 Further VAT issues overview
- 0:17 Cash accounting scheme explained
- 0:36 Annual accounting scheme basics
- 0:50 Flat rate scheme introduction
- 1:39 Cash accounting eligibility and benefits
- 3:21 Basil Limited case study application
About this lesson
including improved cash flow and automatic bad debt relief. You'll see how this compares to the annual accounting and flat rate schemes, and work through a practical example to understand when the cash accounting scheme is the right choice for your business.
Duration: 4m
Transcript
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