VAT Cash TimingFarm 74

VAT Cash Timing · HMRC guidance reviewed 6 August 2026

Supplier payment timing and input VAT recovery

Check how much purchase VAT follows payments made to suppliers in the period.

Decision boundary

Cash accounting can delay input VAT recovery until suppliers are paid, so a customer-receipt benefit can be partly or fully offset.

Evidence to check

Purchase invoices eligible for input VAT
Payments actually made in the period
Imports, acquisitions and other transactions that stay on normal VAT rules

Compare this VAT period

Official source

HMRC VAT Notice 731 purchase rules

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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