An Introduction to the Cash-Basis and Simplified-Expenses Accounting Schemes
- Price: £3.60
- Published: October 2013
- Type: Business Information Factsheet
- Format: PDF
The cash-basis and simplified-expenses income tax accounting schemes that were introduced in the Finance Act 2013 are new voluntary processes that small firms can choose to use to account for income and expenses under tax self-assessment.
The schemes apply to the tax year 2013/14 onwards, and while they don't alter the type of expenses that can be claimed, or change tax liability or the rules for determining profits, they do alter the timing of when income and expenses are accounted for, and when they are claimed.
This factsheet outlines who is eligible for the schemes, how they work, how they relate to tax self-assessment, the process on joining and leaving the schemes, and some of the advantages and limitations.