BIM72015 - Cash basis: receipts: overview

Cash basis receipts are any amounts received in connection with the trade during the the tax year and include:

  • Cash and cheques
  • Tips, fees and commissions
  • Value of any payments 바카라 사이트˜in kind바카라 사이트™ for work done or goods sold
  • Some capital receipts (see BIM72020)
  • The value of trading stock on cessation of trade (see BIM72025)
  • The value of work in progress on cessation of profession or vocation (see BIM72025)
  • Just and reasonable additions in respect of non-commercial (non-arm바카라 사이트™s length) transactions (see below)
  • Certain transitional adjustments on entering the cash basis (see BIM72060 onwards).

Any cash basis receipts which are received after the cessation of a trade using the cash basis are treated as post-cessation receipts (see BIM90030).

Amounts not reflecting commercial transactions

For businesses using the cash basis, there is no requirement to bring into account as a receipt the value of any goods taken from the business for personal use (see BIM33630). Instead, a just and reasonable adjustment should be made to reflect the uncommercial transaction. So, for example, the cost of any such goods might be disallowed as an expense.