VAT Cash Accounting Scheme
Eligibility
You can use cash accounting if:
- your business is registered for VAT
- your estimated VAT taxable turnover is 拢1.35 million or less in the next 12 months
VAT taxable turnover is the total of everything sold that is not VAT exempt.
Exceptions
You cannot use cash accounting if:
- you use the VAT Flat Rate Scheme - instead, the Flat Rate Scheme has its own cash-based turnover method
- you鈥檙e not up to date with your VAT Returns or payments
- you鈥檝e committed a VAT offence in the last 12 months, for example VAT evasion
You cannot use it for the following transactions (you have to use standard VAT accounting instead):
- where the payment terms of a VAT invoice are 6 months or more
- where a VAT invoice is raised in advance
- buying or selling goods using lease purchase, hire purchase, conditional sale or credit sale
- importing goods into Northern Ireland from the EU
- moving goods outside a customs warehouse
You must leave the scheme if your VAT taxable turnover is more than 拢1.6 million