Field of schemes

AS MARGARET THATCHER said 'Don't bring me problems … bring me solutions'. Those famous words were used by a determined prime minister to one of her ministers her message being to get right to the core of an issue — and avoid excessive detail.
The VAT world thrives on detail — but in this article I am going to focus on a range of the special schemes available to businesses (particularly smaller and medium-sized businesses) and ask the simple question: 'Who should be using the schemes … and why?'

Cash accounting scheme

The cash accounting scheme is an ideal starter — mainly because a recent change in the legislation means that it can now be adopted by any business with annual taxable supplies of £1 350 000 or less. The increased limit from £660 000 was effective from 1 April 2007.
The basic principle of cash accounting...