New queries, issue 4280

09 November 2010

Issue: 4280 / Categories: Forum & Feedback

VAT cash accounting scheme; claim for relief under the enterprise investment scheme; non-dom client’s capital gain; director’s dividends

Cash control

My client provides professional services and is registered for VAT and has been in business for up to 18 years. The level of the turnover has been and still is such that the client has always taken advantage to account for VAT on a cash accounting basis.

The client has just had a VAT control visit. The HMRC officer compared the turnover according to the accounts adjusted for the opening and closing debtors with the net turnover according to the VAT returns and is seeking to raise assessments for the differences.

Is she right in doing this?

My argument is that since the client is still within the cash accounting scheme the VAT officer cannot make such adjustments. Besides at the previous visit some four or five years ago the officer at that time did not make any such adjustments.

Can...

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