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VAT-CASH ACCOUNTING

This topic has 1 reply, 2 voices, and was last updated 3 years ago by Tax Tutor.

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October 29, 2021 at 2:11 pm #639381
@sahil
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Under the cash accounting scheme, what does it mean by ‘provides automatic bad debt relief’ ?
October 29, 2021 at 4:54 pm #639399
Tax Tutor
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If the cash is never received then the output tax is never paid to HMRC – whereas under the normal system the output tax is payable on the sale and the trader must then claim back the output tax at a later date
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