Does VAT Cash Accounting reduce the VAT rate?

No. It generally changes when output VAT is paid and input VAT is reclaimed. It is a timing scheme, not a VAT-rate reduction.

Can average payment days determine my VAT Return?

No. HMRC uses payment-method and transaction rules. This calculator compares user-entered proportions actually received and paid in one period.

HMRC guidance reviewed 6 August 2026 · Farm 74

VAT Cash Accounting Calculator: Invoice vs Payment Timing

Compare invoice-basis VAT with customer receipts and supplier payments for one VAT period, then screen the £1.35m entry and £1.6m leaving thresholds.

Uses payments actually received and made
Separates entry, eligibility and excluded-transaction checks
Nothing is stored or submitted

Compare one VAT period

Use VAT-exclusive sales and purchases, then enter the share actually received or paid inside the same VAT period. Nothing is stored or sent to HMRC.

Results appear only after “Compare VAT timing”.

Existing decision guides

Use a guide to check the boundary, then return to the same calculator with your VAT-period figures.

VAT Cash Accounting eligibility: £1.35m entry testCheck the VAT-exclusive turnover screen, general conditions and transaction exclusions separately.Cash accounting vs invoice accounting for VATCompare invoice VAT with VAT attached to payments actually received and made in the period.VAT on unpaid invoices under cash accountingSee how unpaid customer invoices can defer output VAT while supplier-payment timing affects input VAT.30, 60 or 90-day customers: VAT timing boundaryConvert payment-term assumptions into the percentage actually collected inside one VAT period.Supplier payment timing and input VAT recoveryCheck how much purchase VAT follows payments made to suppliers in the period.Leaving VAT Cash Accounting at £1.6mSeparate the £1.6m leaving signal from the treatment of outstanding VAT and one-off sales.Cash Accounting and the VAT Flat Rate SchemeKeep the Cash Accounting Scheme separate from the Flat Rate Scheme’s own cash-based turnover method.VAT quarter cash plan using actual receipts and paymentsBuild a period snapshot without treating the estimate as a VAT Return or statutory record.

Methodology and limits

The engine compares VAT on invoices with VAT attached to the share of sales receipts and purchase payments entered for one period. It applies the £1.35 million entry screen and shows the £1.6 million leaving signal, but HMRC rules determine payment dates, exclusions, one-off increases and transition accounting.

Download the existing VAT-period workbook — a preparation aid, not a VAT record or return.

Check the current HMRC scheme guidance.

Get the VAT cash-timing checklist after confirming your email.

One confirmation email. No filing advice or automatic submission.