BIM70000 - Cash basis: contents

This chapter explains the new cash basis introduced in Finance Act 2013. This is a simpler way for small businesses to calculate their taxable income, allowing them to be taxed on the basis of receipts less payments of allowable expenses. Profits of a trade, profession or vocation can be calculated on the cash basis. For the rest of this chapter, any references to trade include professions and vocations.

This chapter also explains the alternative basis for barristers.

Eligible businesses can start using the cash basis from April 2013.

1. BIM70005

   Overview
2. BIM70010

   Eligibility
3. BIM70011

   Eligibility: partnerships
4. BIM70015

   Receipts: overview
5. BIM70020

   Receipts: capital receipts
6. BIM70025

   Receipts: value of trading stock on cessation of trade, value of work in progress on cessation of profession or vocation
7. BIM70030

   Expenses: overview
8. BIM70035

   Expenses: capital expenditure
9. BIM70036

   Expenses: capital expenditure: Land
10. BIM70037

    Expenses: capital expenditure: Intangible Assets
11. BIM70038

    Expenses: capital expenditure: Financial Assets
12. BIM70039

    Expenses: capital expenditure: Transitional arrangements 2017- 2018
13. BIM70040

    Expenses: interest payments and incidental costs of obtaining finance
14. BIM70050

    Rules not applied in calculating profits
15. BIM70055

    Leaving the cash basis
16. BIM70060

    Transitional adjustments: entering the cash basis: overview
17. BIM70065

    Transitional adjustments: entering the cash basis: examples: debtors, creditors, stock
18. BIM70066

    Transitional adjustments: entering the cash basis: examples: accruals and prepayments
19. BIM70067

    Transitional adjustments: entering the cash basis
20. BIM70068

    Transitional adjustments: entering the cash basis: examples: successions between connected persons
21. BIM70069

    Transitional adjustments: entering the cash basis: examples: VAT, finance leasing
22. BIM70070

    Transitional adjustments: leaving the cash basis: overview
23. BIM70071

    Transitional adjustments: leaving the cash basis: calculation
24. BIM70072

    Transitional adjustments: leaving the cash basis: prepayments
25. BIM70073

    Transitional adjustments: leaving the cash basis: capital expenditure
26. BIM70075

    Alternative basis: contents