Tax Summary and VAT Return wildly different

Accounting
1

Hi,
I have noticed that our Tax Summary and VAT report for the same period are quite different.
We are using cash accounting. Is this why?

There is almost £1,000 difference showing and I would like to understand why.
I’m sure its correct, just trying to understand.

Thanks

2

Yes this is correct, the tax summary reports only on an invoice basis, whereas the actual VAT return (in the case of cash accounting) calculates on a cash basis.

3

Thanks Glenn,

Appreciated as always.

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