Changes to VAT cash accounting scheme proposed
The treasury has announced plans to double the threshold for the Cash Accounting Scheme(CAS) from GBP 660,000 to GBP 1.3m.
Smaller firms have welcomed by The changes to the CAS, which allows eligible businesses to defer paying their VAT until they have received payment from their customers.
"The extension of CAS is great news for small to medium-sized companies," said Phil Lee, partner at accountancy firm Cowgill Holloway. "They will be able to manage their biggest stumbling block - cash flow - more effectively."
John Healey MP said when he announced the extension of the scheme: "Doubling the threshold of the CAS will allow more than 50,000 businesses to significantly improve their cash flow. 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."
Source: Startups, March 27 2007 (VS)
Next Step:
Please contact us if you need further advice, have any questions about our services, would like a free consultation or a fixed fee quote.
Call us now on 01444 484732
