Cash Accounting vs Standard VAT Accounting: Which Suits a UK Freelancer?
Most UK freelancers who register for VAT face a quiet choice that matters more than it first looks: do you account for VAT when you raise an invoice, or when the money actually arrives? The first approach is standard VAT accounting. The second is the cash accounting scheme. Both are legitimate, both change your cash flow, and the right one depends less on theory than on how your clients actually pay you. Under standard accounting, VAT is due on the date you issue the invoice, even if the client…