Chapter 10 - The Cash Basis

Question 1

What are the criteria to use the cash basis?

Answer 1

Small unincorporated businesses can elect to be on this basis.
- Unincorprated businesses
- Receipts £150,000 or less (scale up/down for short/long periods of account).
Must leave scheme if receipts in previous year exceed exceeds £300k

Question 2

How do you calculate taxable taxable profits under the cash basis?

Answer 2

Total cash receipts in acc perid
Less total allowable bus expenses in acc period
Total Taxable Profits