Can you please explain the which scemes is better in relation to the business of camping and leisure hire. Cash accounting or annual accounting VAT schemes
Long time since I've looked at Annual Accounting but a regular amount is payable to HMC&E is based on previous VAT Returns. Cash Accounting payable is on current receipts and expenditure. At the end of the day, the same amount of VAT is payable. If the business is growing quickly, then there may be a cash flow benefit in Annual Accounting.
You might like to research the appropriate Flat Rate scheme and compare this to past submitted Returns.
Regards, Tim
-- Edited by Don Tax on Saturday 13th of August 2011 07:52:37 PM
