If collecting the funds against the invoice raised proves to be challenging or erratic then the cash accounting scheme for VAT may be appropriate for your company.
Under the cash accounting scheme, instead of owing the VAT to HMRC based on when the invoice was raised the VAT is owed once the funds are received for the invoice. This means that the business is not in a position where HMRC needs to be paid for the VAT before the funds have been received for the invoice.
If a decision is made to use the cash accounting scheme then the business must continue to apply that scheme, it is not permitted to continually swap between the cash accounting and an invoice accounting basis. If, however, a valid change occurs in the company’s circumstances then it is allowable to change over.
Why Integro Accounting?
Integro Accounting is the UK’s only specialist provider of fixed fee, limited company accountancy services for contractors, consultants and freelancers that was established to an award winning standard – our Practice Manager, Maria Hickmott FCCA, won The British Accountancy Awards’ ‘Accountant of the Year’ in 2011.
We were set up with the vision of providing a service that is the ultimate for the dynamic, busy professional of today in a language you understand.
Integro Accounting have designed a bespoke service for the contractor who is always on the go; never forgetting that one size will never fit all.
The relationship you have with your accountant is the most important factor in our service which is why we will always offer unlimited contact with your own personal accountant; whether that contact is via the phone, email or face to face.
We have our 3 offices located in London, the South-West and on the Bedfordshire and Buckinghamshire border. There are also meeting locations in many of the major cities and towns across the Home counties, South-West and South Wales, all conveniently placed so that you never have to travel far to meet your accountant.
If you have any questions about contracting or would like to find out more about how Integro Accounting can help you and business please call Christian on 01525 303984, email firstname.lastname@example.org or request a callback.