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What is VAT Annual Accounting Scheme?

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VAT annual accounting scheme
VAT Cash accounting scheme
Annual VAT

How does VAT annual accounting works? for VAT

For businesses with a turnover of up to £1.35 million, the Annual Accounting Scheme offers a simplified approach.

Rather than submitting quarterly VAT returns, you only need to file one annual return.

You make interim payments throughout the year based on an estimated VAT liability, and then reconcile the difference in the annual return.

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Eligibility

Who can use Annual Accounting?

This scheme cannot be used:

  • If you left the scheme in last 12 months.
  • The company in within VAT group
  • Company has no way of paying it’s liabilities and is insolvent.

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