22: Simplication measures Flashcards
what are the flat rates for cars/vans, and motorcycles (hint: think mileage)
CARS AND VANS:
First 10,000 business miles = 45p
Additional business miles = 25p
MOTORCYLES:
Business miles = 24p
what are the flat rates for business hours worked in the home? (hint: no of hours worked in home and monthly expense)
25-50 = £10 51-100 = £18 100+ = £26
can sole traders AND partnerships use cash basis?
yes
what criteria do they ST and P have to meet in order to elect cash basis?
total business receipts for the tax year the election is made does not exceed £150,000.
cash basis election
if the ST starts trading on 01 Jan 2021 and elects cash basis, what is the turnover maximum?
you must apportion the £150,000, so 3/12 x 150k = £37,500.
cash basis election
if the ST has a period greater than 12 months, what does the limit become for cash basis maximum turnover?
remains as £150,000. you do not increase the limit for long basis periods