Cashbasisfortheself-employed

The cash basis allows many sole traders and partnerships to calculate their taxable profit based simply on money received and money paid out during the year, rather than using the more complex accruals method that recognises income and expenses when they are earned or incurred.

This approach can make record-keeping considerably simpler for smaller businesses, though it is not suitable for everyone and carries some restrictions, including how certain expenses and losses are treated. We can help you decide whether the cash basis or traditional accounting is the better fit for your business.