Getting started

At the end of the tax year, work out your taxable profit from your cash basis income and expenses records.

Tick the cash basis box on the form when you send your return.

You can use cash basis for the 2013 to 2014 tax year onwards. If you’re sending a late tax return for tax years before this, you’ll need to use traditional accounting when working out your accounts.

Changing from traditional accounting to cash basis

Existing businesses using traditional accounting might have to make some adjustments when they switch to cash basis.

From 6 April 2024, cash basis will become the default method of accounting. You must opt out if you want to use traditional accounting or cannot use cash basis accounting.

Talk to a tax professional (such as an accountant) or legal adviser if you need help.