Course Details

The cash basis has now become the default method of accounting for tax purposes for most sole traders and partnerships. Many will benefit from its simplicity, but the process of moving to the cash basis is far from simple, and there are a few pitfalls that mean, for many businesses, it will make sense to opt out and stick with traditional accruals basis accounting. For many, the time to decide is now here: in this course we look at the process of moving to the cash basis, the planning opportunities available, and the traps to avoid.

 

Topics covered include:

  • Restrictions: what restrictions have been removed, and what restrictions remain
  • Dealing with capital expenditure under the cash basis
  • In or out: which businesses should join the cash basis and which should avoid it
  • Transitional rules: calculating adjustment income or adjustment expenses on joining or leaving the cash basis
  • The cash basis and Making Tax Digital
  • Planning opportunities arising for those joining or leaving the cash basis

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CPD Course Speaker

BSc FCA, Author and Presenter

Carl Bayley

Carl Bayley is the author of a series of plain English tax guides designed specifically for the layperson and the non-specialist (available from www.taxcafe.co.uk). His particular speciality is his ability to take the weird, complex, inexplicable world of taxation and set it out in the kind of clear, straightforward language taxpayers themselves can understand. Carl takes the same approach when speaking on taxation, a role he frequently undertakes with great enthusiasm, including his highly acclaimed annual ‘Budget Breakfast’ for the ICAEW. He has spoken on taxation on radio and television, including the BBC’s ‘It’s Your Money’ programme and BBC Radio 2’s Jeremy Vine Show. Carl is a past Chairman of the Tax Faculty of the ICAEW and former member of the Institute’s governing Council and Board. Aside from his tax books, Carl is an avid creative writer. His first novel, Trinity of Souls, was published in 2024, with his second, Destiny of Souls, following in March 2025. When he isn’t working, he takes on the equally taxing challenges of hill walking and horse riding: his Munro tally is now 106 and, while he remains a novice rider, his progress is cantering along nicely. Carl lives in the Scottish Borders, where he enjoys spending time with his partner, Linda.