22: Simplication measures Flashcards

1
Q

what are the flat rates for cars/vans, and motorcycles (hint: think mileage)

A

CARS AND VANS:
First 10,000 business miles = 45p
Additional business miles = 25p

MOTORCYLES:
Business miles = 24p

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2
Q

what are the flat rates for business hours worked in the home? (hint: no of hours worked in home and monthly expense)

A
25-50 = £10
51-100 = £18
100+ = £26
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3
Q

can sole traders AND partnerships use cash basis?

A

yes

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4
Q

what criteria do they ST and P have to meet in order to elect cash basis?

A

total business receipts for the tax year the election is made does not exceed £150,000.

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5
Q

cash basis election

if the ST starts trading on 01 Jan 2021 and elects cash basis, what is the turnover maximum?

A

you must apportion the £150,000, so 3/12 x 150k = £37,500.

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6
Q

cash basis election

if the ST has a period greater than 12 months, what does the limit become for cash basis maximum turnover?

A

remains as £150,000. you do not increase the limit for long basis periods

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