1) An accounting scheme for value added tax enabling a taxable person to account for VAT on the basis of amounts paid and received during the period of the VAT return. Relief for bad debts is automatically available under this scheme. In order to qualify for the scheme, expected turnover should not exceed £660,000 in the next 12 months. A business already in the scheme is allowed a 25% tolerance limit above this threshold.

2) (cash-flow accounting) A system of accounting that records only the cash payments and receipts relating to transactions made by a business, rather than when the money is earned or when expenses are incurred, as in accrual accounting. UK legislation does not permit this system of accounting to be used for published accounts.

• NBV
• NCI
• NDP
• near money
• negative cash flow
• negative equity
• negative income tax
• negative interest
• negative net worth
• negative pledge
• negative yield curve
• negligence
• negotiability
• negotiable instrument
• negotiable order of withdrawal
• negotiate
• net assets
• net asset value
• net book value
• net borrowed reserves
• net capital rule
• net current assets
• net dividend
• net domestic product
• net income