Definition of VAT annual accounting

Under the annual accounting scheme businesses file only one VAT return each year, two months after the year end. They will normally make nine monthly interim VAT payments during the year, based on their estimated total liability for the year, followed by a balancing payment with the return.

A business may apply to use the scheme at any time on or after the date it is registered for VAT if its taxable turnover is not expected to exceed £1.35 million for the year. A business already using the scheme can continue to do so until its annual taxable turnover reaches £1.6 million.  [1]

FT Articles & Analysis

No articles are associated with this term

Related Terms