Choice of basis for trades - cash or accruals?

1. Certain unincorporated businesses cannot use the cash basis

1.1. Excluded businesses

2. Transitional arrangements

2.1. Entering the cash basis

2.2. Leaving the cash basis

3. Certain tax rules are altered under the cash basis

3.1. Changes from 2024-25

4. Cash basis gives simpler administration

5. Other matters

5.1. Capital allowances

5.2. Interaction with CGT

5.3. NICs

5.4. Universal credits

6. Accruals basis

6.1. Can use by election

6.2. Use generally accepted accounting practice (GAAP)

6.3. Record receipts and expenses applying to accounting period

6.4. Record stock, debtors and creditors