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Professional accountants serving the UK and helping small businesses to grow!

Whether you are an expanding company or just starting up, KAMP Accountants is here to help.

With extensive experience working with large and small clients throughout the UK, we support large and small business in a broad range of business sectors with all their accountancy requirements.

Cash Basis

Newsletter issue - December 2014

From 6 April 2013 you can use two "simplifications" to make accounting easier for your unincorporated businesses: the cash basis and fixed rate deductions. If your business falls within the size criteria you can use one or both of these simplifications, or neither, the choice is yours.

To start to use the cash basis your business must have annual turnover of less than the VAT registration threshold (currently £81,000). There are slightly different rules if you also claim the Universal Credit benefit (successor to tax credits). You must stop using the cash basis if your turnover reaches double the VAT registration threshold.

You can opt to use the cash basis on a year by year basis and make that decision after the end of the year when you complete your tax return. For example you can opt into the cash basis for 2013/14 then and opt out for 2014/15. There are no specific rules to prevent you from doing this, but adjustments may need to be made to your taxable income when moving out of the cash basis to the accruals basis (normal accounting).

You can't claim capital allowances (CAs) for most assets you buy while using the cash basis, as a full deduction is given for the cost of the asset when it is paid for. But the cost of a car can't be deducted under the cash basis, so CAs for cars used for the business should be claimed, subject to a reduction for any private use of the vehicle.

However, claiming CAs for the car means that fixed rate deductions (45p or 25p per business mile) can't be claimed for that vehicle. It is possible to have some cars subject to fixed rate deductions (for which CAs haven't been claimed) and others that don't qualify for fixed rate deductions (where CAs are claimed) within the same business.

There are a number of confusing rules about capital allowances which have been claimed for assets that you hold when you start to use the cash basis. Our tax experts can talk you through those rules if they apply to your business.

Fees for non-recurrent services would be based on time involved and would be agreed before we start work on given task.

  • Accounts and Taxation
  • Accounts prepared on time and presented to you at your premises
  • Income tax calculations and projections
  • Annual superannuation certificates for Partners
  • Practice manager training about bookkeeping
  • 2 - 4 meetings in a year at your premises
  • Personal expenses
  • Payroll
  • SD55 for practice staff
  • Installation and training in respect of practice computerised accounting system
  • Unlimited telephone and email support for adhoc queries

Non - recurrent Services

•VAT advice •Capital gains tax planning •Partnership agreements •Surgeries finances •Pension planning •Budget and cashflow planning •Inheritance Tax planning

Recurrent Annual Services based on fixed fee:

  • Accounts and Taxation
  • Accounts prepared on time and presented to you at your premises
  • Income tax calculations for Principles and Associates
  • Practice manager training about bookkeeping
  • 2-4 meetings in a year at your premises
  • Personal expenses
  • Payroll
  • SD55 for practice staff
  • Installation and training in respect of practice computerised accounting system
  • Unlimited telephone and email support for adhoc queries

Non - recurrent Services

  • VAT advice
  • Capital gains tax planning
  • Partnership agreements
  • Surgeries finances
  • Pension planning
  • Budget and cashflow planning
  • Inheritance Tax planning

Fees for non-recurrent services would be based on time involved and would be agreed before we start work on given task.

Medical Practices

Our specialist team provides a wide range of accounting and business services to General Practice.

Recurrent Annual Services based on fixed fee:

Dental Surgeries

Fees for non-recurrent services would be based on time involved and would be agreed before we start work on given task.

Recurrent Annual Services based on fixed fee: