We explain vat cash accounting in plain English, handle it correctly, and make sure you claim every relief you are entitled to, all at a fixed fee.
VAT Cash Accounting
The VAT Cash Accounting Scheme lets you account for VAT when you are actually paid and pay your suppliers, rather than when invoices are raised, which helps cash flow and gives automatic bad-debt relief.
We check whether cash accounting suits your business, set it up, and handle your VAT returns on that basis, so you are not paying VAT on invoices your customers have not yet paid.
Cash accounting is valuable if customers pay slowly, because you do not pay VAT to HMRC until you have been paid, and you never pay VAT on a sale that turns into a bad debt.
The Detail That Matters
The VAT Cash Accounting Scheme lets you account for VAT when you are actually paid and pay suppliers, rather than when invoices are raised. It helps cash flow and gives automatic bad-debt relief, valuable if your customers pay slowly.
On cash accounting you hand VAT to HMRC only once your customer has paid you, and reclaim input VAT when you pay suppliers. Standard VAT, by contrast, makes you pay over the VAT on an invoice even before the customer settles it.
Because you only pay VAT once paid, you never hand VAT to HMRC on a sale that becomes a bad debt, the relief is built in, unlike standard accounting where you must claim bad-debt relief separately.
The scheme is open to businesses under the turnover limit for it. It particularly suits those with slow-paying customers or a high risk of bad debts.
We confirm you qualify and whether it benefits you, set it up, and handle your returns on the cash basis correctly.
Businesses on standard VAT often pay HMRC the VAT on invoices months before customers pay them, straining cash flow, and then have to claim bad-debt relief separately when a sale goes bad; cash accounting fixes both.
Key Figures
How We Help
On cash accounting you account for VAT when money changes hands, not when invoices are raised, which helps if customers pay slowly.
Because you only pay VAT once paid, you never hand VAT to HMRC on a sale that becomes a bad debt. We set it up to protect you.
We handle your VAT returns on the cash accounting basis correctly and on time.
All the forms, calculations and correspondence handled on your behalf, so you never have to decode HMRC's rules or sit on hold.
A clear fixed fee quoted after a free call, your position explained in plain English, and never a surprise bill.
We act quickly, and where earlier years are involved we put those right too, reclaiming refunds or minimising penalties.
Businesses on standard VAT often pay HMRC the VAT on invoices before customers have paid them, straining cash flow. Cash accounting fixes that, but is overlooked. We check whether it suits you.
Recent Client Outcome
A business with slow-paying customers was paying VAT to HMRC on invoices months before it was paid, straining cash flow.
What we did. We moved them to the VAT Cash Accounting Scheme, so they accounted for VAT only when actually paid, and set up their returns on that basis.
The outcome. Their VAT cash flow eased significantly, and they received automatic relief on a bad debt they had written off, with no separate claim needed.
Matching the VAT to when money actually changed hands solved a cash-flow strain the standard scheme had created.
Why People Come to Us
Questions Answered
Want us to handle this for you, end to end?
See our VAT Returns Service →Free fifteen-minute call. Fixed quote within twenty-four hours. Your return filed, every expense claimed, your bill explained, and salon VAT, payroll and accounts handled if you own a salon. Same accountant, start to finish.
Or email info@yourtaxhelp.co.uk, we typically respond within two business hours.
📅 Free consultation calls available weekdays 1pm to 3pm and 7pm to 8pm. Pick a slot that suits you.