Change VAT Scheme from Standard to Cash Accounting

Find out how to change from Standard VAT to the VAT Cash Accounting scheme.

1. Enter all transactions under the Standard scheme. For example, if your old VAT scheme ended on 30 September, enter all transactions with VAT dated up to 30 September.
2. Don't enter any transactions that won't be subject to VAT. For example, from 1 October onwards.
3. Allocate or delete all outstanding Payments on Account. This ensures that all invoices are either paid on a Standard VAT scheme.
   Find out how to allocate or delete transactions:
   • Allocate existing transactions
   • Delete a supplier payment
   • Delete a customer receipt
   • Delete a purchase credit note
   • Delete a sales credit note
4. Submit your final VAT Return under the Standard VAT scheme. Understand how to create and submit a VAT Return.
5. Delete all transactions with a date after your final standard VAT Return. This ensures no transactions remain from your old VAT scheme. You can't change VAT schemes when you have transactions from your old VAT scheme. This is because we assume you need to submit these transactions on a VAT Return first.

Change to a Cash Accounting scheme

1. Select Settings and then select Business Settings.
2. Select Accounting dates and VAT.
3. Use the VAT Scheme dropdown to select Cash Accounting.
4. Select Save.
5. If you deleted any transactions before changing your VAT Scheme, you can re-enter them now.

If you have been using the incorrect VAT Scheme

This usually happens when you set up the wrong VAT scheme or choose Not Registered by mistake.

To correct this, you need to change to the right VAT scheme. Understand what to do if you've been processing on an incorrect VAT Scheme.