Chapter 10 Cash basis Flashcards
1
Q
Who can apply for CASH basis
A
- unincorporated business
- RECEIPTS < £150,000 (300,000 if universal credit received)
- receipts don’t exceed £300,000
HARDMANS
2
Q
What is the treatment of CAPEX for the cash basis
A
Purchase = Taxable expense
Sale = taxable income
*restricted to business use
3
Q
Treatment of cars under the cash basis
A
Capital allowances as normal
4
Q
Car lease cost under cash basis
A
No restriction for high emissions
110g/km
5
Q
Goods for own use under the cash basis
A
Cost of the items to the business only
6
Q
Treatment of interest under cash basis scheme
A
ALL allowable (even if not trade related)
UP TO £500 per 12 months
