Start Date for Flat Rate VAT cash accounting


I’ve just registered with the VAT flat rate cash accounting scheme.

I’ve had my VAT number come through in August, but asked for the start date to be back dated to the 1st May which they’ve done.

I’ve re-issued all invoices from May 1st to include VAT (none had been paid so it was quite simple to do this)

When I complete my first VAT return though, do I have to include payments received after 1st May even if they relate to invoices issued before my VAT start date (i.e. ones that I hadn’t charged VAT on)??

Any input appreciated!


If you’re using the 'Cash Based Turnover Method’ (Cash Accounting Method) you will have to account for the VAT inclusive sales and supplies you’ve been paid for in the VAT period regardless of the invoice date.

Although if you use the ‘Basic Turnover Method’ (Accrual Accounting Method) then you only include the VAT inclusive total of the sales and supplies you’ve made in the VAT period and therefore any invoices issued prior to the effective date of registration (01 May 2013) does not need to be included.

If you wish to change to the ‘Accrual Accounting Method’ go to the ‘VAT Settings’ and set the start date to 01/05/2013 and the ‘Accounting Method’ to ‘Accrual Accounting’:

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