Cash Basis Accounting vs Traditional Accounting: Which One Are You Actually On?
Since 6 April 2024 the cash basis has been the default way sole traders and partnerships work out taxable profit, and the turnover limit that used to cap it has gone. Most people moved onto it without deciding to. Here is what the cash basis does to your tax bill, when traditional accounting is still the better answer, and how to get off it.
Read the guide