HMRC have announced that the threshold for the Cash Accounting Scheme will be more than doubled from £660,000 to £1,350,000 from 1 April 2007.

The Cash Accounting Scheme allows eligible businesses to defer paying their VAT over until they have received payment from their customers instead of accounting for and paying VAT when they issue and receive invoices.

John Healey MP, Financial Secretary to the Treasury, 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."

Please get in touch if you would like to know more about the Cash Accounting Scheme.

Internet Link: Press release