When is the balancing payment due for the annual accounting scheme?

The balancing payment for the annual accounting scheme is due 2 months after the end of the accounting year. This timing is designed to provide businesses a structured period to finalize their accounts and prepare their payment, ensuring they have sufficient time to assess their overall tax position after the completion of the financial year.

The annual accounting scheme offers a simplified approach to VAT accounting, allowing businesses to submit one VAT return per year rather than quarterly. After this annual return is submitted, businesses might need to make a balancing payment if their actual VAT liability exceeds their scheduled payments made throughout the year. Since the balancing payment deadline is 2 months after the year-end, it aligns with the requirement to submit VAT returns within that timeframe.

The other options suggest differing periods, which do not align with the established regulations for the annual accounting scheme. Understanding these specific timelines is crucial for compliance with VAT regulations and for effective cash flow management within a business.