HMRC wants SMEs to use simpler accounting

If you’re a sole trader or unincorporated business with an annual income of less than £79k, HMRC wants you to use its simplified ‘cash basis’ scheme, where you’re just taxed on money going in and out of the business.

HMRC says you’d just have to work out cash received in the tax year, less any money spent on allowable business expenses, thus avoiding complex accounts meant for larger companies.  There is also a flat-rate ‘simplified expenses’ scheme.

Short introduction to cash basis and simplified expenses

Longer video on the subject

http://youtu.be/CmU2EbUNgiQ

There are 4 comments for this article
  1. Euroffice Customer at 1:22 pm

    Any idea that makes life simpler has to be adopted, combine this with the money saved on man hours and it has to be implemented ASAP !!

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