Increasing cash basis thresholds for unincorporated businesses

This measure makes amendments to Section 31B of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005), in order to set the relevant maximum threshold at which an individual can elect to calculate trade profits using cash basis accounting.

The change is to increase the cash basis threshold to a fixed amount of £150,000 and the exit threshold to twice the entry threshold. The cash basis thresholds for Universal Credit claimants (for both entry and exit) is set at £300,000.

The statutory instrument for this measure is now available.