Changing Vat from Cash to accrual


I am just in the process of changing our VAT from cash accounting to accrual accounting.

When I do this our vat liability take a rather large unexpected leap.

We go from around £4k of vat being owed to 67k of VAT being owed which is a significant increase and also really is not the correct figure at all.

I have taken a look at the calulatations at it appears that it recalculating VAT from previous submissions and not treating it that we have already paid vat on those under the cash accounting scheme.

I’m assuming this is a small bug on the system but somewhere that when the scheme changes it stops taking into account previous submissions?


Hi @benjam3,

Changing between methods can be fiddly for the first return.

With Cash accounting, all of the payments linked to the VAT returns are locked but with Accrual all of the invoices are locked. This is why you will see things that you would assume should be locked.

This question has been asked previously on the forum, if you look at this post it may help with some of your queries: Switching from Accrual VAT to Cash VAT accounting

Another thread you may find helps: Switching VAT accrual to Cash - #2 by QFBeth

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