This new option for some small businesses needs careful consideration, particularly if you are self-employed and have annual turnover of less than £79,000.
You can choose to:
- use the cash basis with or without also using fixed rate deductions
- use accruals accounting with or without also using fixed rate deductions
The fixed rate deductions cover motor expenses and the use of your home as an office, and are available irrespective of your turnover. We will consider all of the issues before making a recommendation as to the best options in your particular circumstances.