As part of today’s Budget documentation, HMRC are inviting views on “options for extending the Income Tax cash basis for self-employed businesses which would allow more businesses to use the simpler regime”.
The consultation will focus on four proposals, but will also welcome other ideas. The four so far identified are:
- increasing the turnover thresholds for businesses to use the cash basis
- setting the cash basis as the default, with an opt-out for accruals
- increasing the £500 limit on interest deductions in the cash basis
- relaxing restrictions on using relief for losses made in the cash basis
https://www.gov.uk/government/consultations/expanding-the-cash-basis
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