Final tweaks simplify cash basis law
A few minor tweaks have been made to simplify the optional cash accounting regime that will be available to small, unincorporated businesses from 1 April.
An updated TIIN released on Budget day explained that HMRC has taken note of feedback during user testing and introduced tighter wording to block flipping in and out of the regime. Critics of the scheme warned that some businesses might attempt to avoid tax by opting in and out of cash accounting. The revised legislation will now specify that businesses using the cash basis have to continue doing so until their circumstances change.
“You will only be able to change for genuine commercial reasons,” explained Rebecca Benneyworth.