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Yep
All looks straightforward to me. Those opting to use the cash basis will not have to use the simplified flat rate expenses for their cars under "Simpler income tax for the simplest small businesses". A simple capital allowance computation will be required thereby making it not quite a cash basis - but nearly. You couldn't make this up, could you? In any case 10 days is plenty enough time for me to digest all of this and advise my clients of the changes.
Universal Credits
I went on a tax course last week and was told that any self- employed person who claimed Universal Credits would have to go on the simplified cash scheme. Is this still the case?
If so, what about a partnership whereby only 1 partner needs to claim Universal Credits - is the partnership business forced to use simplified cash accounting?
Universal Credits
I might be wrong Elaine but I think the cash basis for UC claimants is not the same as the cash basis for income tax. I believe it's just an "easy" way (I've avoided the word "simple") to report your earnings each month in a very timely fashion in order not to breach the stringent deadlines. There will clearly be some correlation between 12 of these claims and the annual taxable profits but there will be differences if only because vehicle capital allowances are now counted as allowable cash expenses. So, to answer your question, UC claimants don't have to opt for "simplified cash accounting". If I've got this wrong somebody please tell me because I'm losing the will to live.