VCAS9600 - Cash accounting scheme: Previous changes to the scheme: Changes introduced on 1 April 2004
The entry and exit ceilings were increased to £660,000 and £825,000 respectively. In addition new leaving rules were introduced for businesses who leave the scheme voluntarily or because they exceeded the exit ceiling. These businesses can have an additional six months in which to account for outstanding VAT incurred whilst they were using the scheme.
New rules were also introduced to allow all businesses leaving the scheme to adjust for bad debts in the period in which they leave.