HMRC have announced that the
threshold for the Cash Accounting Scheme will
be more than doubled from £660,000 to £1,350,000
from 1 April 2007.
The Cash Accounting Scheme allows eligible
businesses to defer paying their VAT over until
they have received payment from their customers
instead of accounting for and paying VAT when
they issue and receive invoices.
John Healey MP, Financial Secretary to the
Treasury, said:
"Doubling the threshold of the Cash Accounting
Scheme will allow more than 50,000 businesses
to significantly improve their cashflow. We
know that small businesses are the engine for
the UK's economy, so it is only right that
we look to improve the climate for them."
Please get in touch if you would like to know
more about the Cash Accounting Scheme.
Internet Link:
Press release
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