Just before Christmas, HMRC released amended draft Finance Bill 2013 clauses setting out further details for the simplified income and expense regime, and transitional rules to restrict manipulations by businesses moving in and out of the scheme.
The amendments address some of the queries and anomalies raised by tax advisers and AccountingWEB members, but the technical clarifications are unlikely to quell complaints that the cash basis is adding a new layer of complication rather than simplifying the tax system.
Detailed conditions and explanations are set out in an HMRC technical note, Simpler Income Tax for the Simplest Small Businesses. Some of the key points covered include:
- Accounting dates: annual reporting periods to end between 31 March and 30...