VAT Cash TimingFarm 74

VAT Cash Timing · HMRC guidance reviewed 6 August 2026

Cash Accounting and the VAT Flat Rate Scheme

Keep the Cash Accounting Scheme separate from the Flat Rate Scheme’s own cash-based turnover method.

Decision boundary

A business using the Flat Rate Scheme cannot also use the Cash Accounting Scheme. The Flat Rate Scheme has a separate cash-based turnover method.

Evidence to check

Which VAT scheme the business currently uses
Whether a Flat Rate cash-based turnover method is being considered
No mixing of Flat Rate percentages with this payment-timing calculator

Compare this VAT period

Official source

HMRC scheme exceptions

General information only. HMRC determines scheme eligibility, payment periods, exclusions and transition accounting.

Related guides

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.

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