Small firms can save time and money with a scheme that allows them to be taxed on income coming in and going out of their business.
The “cash basis” scheme allows sole traders and firms earning less than £79,000 to simplify their accounting processes by working out the cash received in a tax year, less any money spent on allowable business expenses.
The scheme is suitable for hairdressers, window cleaners, taxi drivers, gardeners and other service providers.
Carol Lunney from Her Majesty’s Revenue and Customs said: “The cash basis and simplified expenses schemes can help small businesses save time and money.
“With a new tax year on the horizon, now is the time to start thinking about them.”
For more details on the “cash basis” scheme, visit www.hmrc.gov.uk