VCAS9500 | Cash accounting scheme: Previous changes to the scheme: Changes introduced on 22 September 1997

Update 2 to the May 1994 edition of Notice 731 gave details of new rules concerning factored debts. These rules came into force on the date that update was actually issued ie 22 September 1997. From that date businesses who sell or assign a debt to a factor, by way of an absolute assignment, must account for output tax in the accounting period in which the debt is sold or assigned.