Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login

Search Archive


Why the cash basis may not suit your business

Source: HM Revenue & Customs | | 23/01/2018

The cash basis scheme helps many sole traders and other unincorporated businesses benefit from a simpler way of managing their financial affairs. The scheme is not open to limited companies and limited liability partnerships. It allows qualifying businesses to use the cash basis when recording income and expenditure. However, some small businesses are more suited to using the cash basis than others.

If you fall within any of the following categories, the cash basis may not be your best option:

  • want to claim interest or bank charges of more than £500 as an expense
  • run a business that’s more complex, e.g. you have high levels of stock
  • need to get finance for your business - a bank could ask to see accounts drawn up using traditional accounting to see what you owe and are due before agreeing a loan
  • have losses that you want to offset against other taxable income (‘sideways loss relief’)

In a nutshell, the scheme is most suitable for straight forward businesses especially those that provide services. You must have a turnover of £150,000 or less to join the scheme, and you can continue using the scheme until your turnover reaches £300,000.

Planning note

If you are thinking of using the scheme, we would be happy to help you consider your options and to crunch the numbers to see if the cash basis scheme is a suitable option.



25125805 m

 

 

Start ups require a quick response and have lots to do quite apart from the administrative setup of the business.  We provide a complete service.

Read more...

13282222 m

As a general practice we have expertise in a wide range of industries.  We are also statutory auditors, enabling us to prepare reports where that status is required. 

Read more...

24961532 m

Certainty of costs enable planning and confidence.  We have insurance schemes available.

Read more...

25332423 l

 

 

We provide a range of software to help run your business and enable easy interaction with us.

Read more...

Membership

 

About Us

Established in 1991 based in Epsom Surrey, CWM use technology to its fullest extent enabling us to work with clients based anywhere, with maximum efficiency resulting in lower costs.

Contact US

1a High Street
Epsom
Surrey
KT19 8DA
01372 727333

This email address is being protected from spambots. You need JavaScript enabled to view it.

http://www.cwmaccountants.com

Follow Us