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Cash basis accounting and simplified expenses

Small self-employed businesses have the option to use cash basis accounting and simplified expenses. On this page you can find articles, books and online resources providing background information and key documentation.

Featured book

Cash basis for small businesses
(Wolters Kluwer, 2013)
Commentary on the cash basis rules for small unincorporated businesses applying from the tax year 2013-14 onwards. Includes worked examples.

Featured digest

Using the cash basis
(Wolters Kluwer, 2015)
Overview of the cash basis system with notes on tax planning and worked examples.

Online articles

The Library provides access to leading business, finance and management journals. These journals are available to logged-in ICAEW members, ACA students and other entitled users subject to suppliers' terms of use.

Cash-basis accounting being introduced in the UK

Article on the UK government's significant 2012 change in the rules surrounding the calculation of taxable profit for small unincorporated businesses.

Useful links

ICAEW

Working with HMRC
Help for tax advisers with useful ICAEW and HMRC contacts and guidance all in one place.

The cash basis for traders and landlords
This practical TAXguide, published in September 2018, is available to Tax Faculty members. The guide supersedes the previous 2013 TAXline Tax Practice guide, The new cash basis of assessment: A Tax Faculty guide to the rules.

TAXguide 03/17 - Cash basis of accounting
A selection of answers provided to key questions raised by viewers of the Tax Faculty webinar ‘cash basis of accounting’, broadcast on 1 February 2017. The guide and webinar recording are available to Tax Faculty members.

GOV.UK

Simpler income tax for the simplest small businesses: Technical Note
Technical note published by HMRC in March 2013 giving an overview and key principles of cash basis, simplified expenses and transitional rules in place.

Revenue & Customs Brief 14/13 – Direct tax: Simpler income tax: Simplified expenses
Guidance from HMRC on business mileage deductions, board and lodging private use adjustments and use of home for business deductions. The brief includes tables showing flat rates that apply.

Simpler income tax – Cash basis and simplified expenses
A short video produced by HMRC explaining the two new tax schemes.

Simpler Income Tax: cash basis
Covering:

  • how cash basis works
  • who can use cash basis
  • income and expenses under cash basis
  • VAT registered businesses.

Simpler Income Tax: simplified expenses
Guidance, including flat rates, for using simplified expenses for vehicles, business use of homes and private use of business premises.

Simplified expenses checker
Online calculator to help determine whether using flat rate simplified expenses is appropriate for a business.

Articles and books in print

To find out how you can borrow books from the Library please see our guide to book loans.

You can obtain copies of articles or extracts of books and reports by post, fax or email through our document supply service.

Can't find what you are looking for?

If you're having trouble finding the information you need, ask the Library & Information Service. Contact us by telephone on +44 (0)20 7920 8620, by web chat or by email at library@icaew.com.

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