Course Details

Most unincorporated businesses (sole traders and general partnerships) now face a choice of what accounting basis to use for tax purposes: cash or accruals. For many, the attraction of the cash basis is its apparent simplicity. But is it really as simple as it appears? For many it isn’t; and the process of joining or leaving the cash basis is far from simple. On top of this, there are a few pitfalls that mean, for many businesses, it will make sense to opt out and stick with traditional accruals basis accounting. On the other hand, some businesses could see significant tax savings or deferrals if they join the cash basis; and the process of joining or leaving the regime, while complex, provides some tremendous tax planning opportunities.

 

Carl Bayley covers the following topics during this course:

  • Who can join the cash basis: the main restrictions were removed in 2024, but many others remain
  • Timing issues: when does the cash basis defer tax; when does it accelerate it?
  • Lost relief: business expenditure that cannot be claimed under the cash basis
  • Dealing with capital expenditure under the cash basis
  • Joining or leaving the cash basis
  • Planning opportunities for those joining or leaving the cash basis
  • Practical implications of using the cash basis, including Making Tax Digital

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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.