With cash basis you only record income or expenses when you receive money or pay a bill. You’ll use your records to work out your profit on your Self Assessment tax return.

You can use cash basis if you’re a sole trader or partnership without corporate partners. If you have more than one business, you can choose whether you use cash basis or traditional …

If you’re currently claiming capital allowances and want to switch to cash basis, find out what changes you need to make.

Nov 22, 2023 · Eligible businesses, such as self-employed people and partnerships of individuals, of any size will be able to use the cash basis, allowing them to continue using the cash basis …

You can use cash basis for your records before the 2024 to 2025 tax year if you: run a small self-employed business, for example, sole trader or partnership have a turnover of £150,000 or …

From the 2024 to 2025 tax year, cash basis is the default method of accounting. You must opt out if you want to use traditional accounting or cannot use cash basis accounting.

Apr 6, 2025 · The way taxable profits are worked out for the tax year has changed. Read changes to reporting income from self employment and partnerships for information on what the new …

Apr 3, 2025 · This measure aims to improve and simplify small businesses’ experience of reporting in Self Assessment by extending eligibility for the cash basis, encouraging its use …

Apr 6, 2024 · There are transitional rules for 2023 to 2024 which may affect your business. Read changes to reporting income from self employment and partnerships for information on what …

If you use cash basis accounting and buy a car for your business, claim the cost as a capital allowance as long as you’re not using simplified expenses.