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The cash basis may not be as simple as its name suggests
KEY POINTS
- Information on HMRC website.
- Too many complications included in the new rules.
- Tax adjustments may still be required.
- Allowable capital expenses are restricted.
- Cash basis may cause more work.
I am writing from the viewpoint of a practitioner who deals with some micro-businesses and isn’t involved in consultations. Something like the new cash basis for income tax tends to arrive on my radar when it is already in force and I need to work out whether I think it is a Good Thing or not.
With due apologies to anyone in the professional bodies who has fought for this behind the scenes on behalf of my clients anything coming from HMRC with “simplification” in the press release gives me a sinking feeling.
At the very best ...
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