Readers’ forum: Is late exit from cash accounting scheme a problem?

I recently reviewed the accounts of a client whose main activity is to provide educational services. The business is profit making so all income is standard rated. My questions are as follows:

1.  The company has been setting off the tutor expenses against sales and showing the net figures as ‘commission receivable’ in the profit and loss account. I would like to include both the gross sales and cost of sales figures separately but am concerned this might create a VAT query from HMRC when the next accounts are filed for corporation tax purposes. Are my concerns justified? The client accounts for output tax on the gross sales figure because it has contracts with the students.
2.  The company is currently on a ‘cash accounting’ basis for VAT purposes. Based on the above and the sales figure being relevant for VAT purposes and not the margin the company should have...