- VAT registered taxpayers do not need to apply to use the Cash Accounting scheme, but HMRC has the power to eject someone from using it if they believe there is a risk of abuse.
- This power is rarely used but has been seen when multiple businesses are closely related.
- Taxpayers must demonstrate that HMRC’s decision was not reasonable to appeal the decision.
- Cash Accounting may not be suitable for all small businesses, such as retail businesses or those making zero-rated supplies.
Source Accountingweb
