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Prescribed accounting period meaning
Published by a LexisNexis Tax expert
What does Prescribed accounting period mean?
The set period for which a VAT-registered taxable person must submit a VAT return and pay VAT. In England & Wales, Scotland and Northern Ireland this is a statutory VAT concept: the Value Added Tax Act 1994 and the VAT Regulations 1995 prescribe “prescribed accounting periods”, ordinarily quarterly, though HMRC may direct monthly periods or permit the annual accounting scheme. HMRC can vary the start date or length on registration, a change of VAT stagger, deregistration, business transfers or to protect the revenue, and may approve changes on request.
The prescribed accounting period determines which supplies and input tax fall into a return, fixes filing and payment deadlines, and therefore governs compliance, penalties and interest exposure, as well as Making Tax Digital for VAT obligations.
In Ireland, the equivalent concept is the “tax period” under the VAT Consolidation Act 2010 (usually bi‑monthly, with monthly or four‑monthly options for certain traders). While practitioners may use “prescribed accounting period” descriptively, it is not the Irish statutory term. Usage across the UK is consistent for VAT; other taxes generally use different terminology.
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View the related Practice Notes about Prescribed accounting period
PRACTICE NOTES
UK Banking, Finance, Capital Markets, Derivatives and Insolvency Law Glossary including Islamic finance
Banking & Finance glossary A Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) The foremost Islamic, international, autonomous, independent, not-for-profit corporate body that develops and issues accounting, auditing, governance, ethics and Shari’ah benchmarks and standards for Islamic Financial Institutions (IFIs) and the wider Islamic finance sector. Founded in Bahrain in 1991, it is backed by a number of institutional members across more than 45 countries, including central banks and regulatory authorities, financial institutions, accounting and auditing practices, and legal firms. Its pronouncements are currently applied by leading Islamic financial institutions across the world and have advanced a progressive and gradual harmonisation of global Islamic finance practice. It also delivers professional qualification programmes—notably Certified Islamic Professional Accountant (CIPA), Certified Shari’ah Adviser and Auditor (CSAA), and the corporate compliance programme—in efforts to strengthen the industry’s human capital and governance frameworks. For further details, see Practice Note: Key participants in the Islamic finance industry—Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Acceleration Acceleration is the formal action...
22 May
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