retailworld
13-02-2007, 23:06
special scheme to help cashflow in small businesses will be extended from 1st April 2007, the Financial Secretary to the Treasury, John Healey, has announced.
The Cash Accounting Scheme (CAS) allows eligible businesses to defer paying their VAT until they have received payment from their customers, as opposed to accounting for and paying VAT when they issue and receive invoices.
The changes mean that the threshold for CAS is to be more than doubled from £660,000 to £1.35million. Changes to the VAT scheme will help small-to-medium-sized companies cope with cashflow difficulties.
Speaking at the Yorkshire Forward Conference in Bradford, John Healey said: "Doubling the threshold of the Cash Accounting Scheme will allow more than 50,000 businesses to significantly improve their cashflow. We know that small businesses are the engine for the UK's economy, so it is only right that we look to improve the climate for them."
[Source: Business Link 12th February 2007]
The Cash Accounting Scheme (CAS) allows eligible businesses to defer paying their VAT until they have received payment from their customers, as opposed to accounting for and paying VAT when they issue and receive invoices.
The changes mean that the threshold for CAS is to be more than doubled from £660,000 to £1.35million. Changes to the VAT scheme will help small-to-medium-sized companies cope with cashflow difficulties.
Speaking at the Yorkshire Forward Conference in Bradford, John Healey said: "Doubling the threshold of the Cash Accounting Scheme will allow more than 50,000 businesses to significantly improve their cashflow. We know that small businesses are the engine for the UK's economy, so it is only right that we look to improve the climate for them."
[Source: Business Link 12th February 2007]