Choice of basis for trades - cash or accruals? (2026)

1. [Transitional arrangements](https://library.croneri.co.uk/po-heading-id_0wlJghH3TkOOtoggCqwTaA)

1.1. Entering the cash basis

1.2. Leaving the cash basis

2. [Cash basis gives simpler administration](https://library.croneri.co.uk//po-heading-id_OV0rVemkg0muA0VLk0Dtiw)

3. [Other matters](https://library.croneri.co.uk/po-heading-id_8mJLbrvAWEGUCUGUSB2zVg)

3.1. Capital allowances

3.2. Interaction with CGT

3.3. NICs

3.4. Universal credits

4. [Certain tax rules are altered under the cash basis](https://library.croneri.co.uk/po-heading-id_vNXUbY9T2E2upmlz2tfbGQ#po-heading-id_7j0IlpJBRkabEMtpi6uuvQ#)

4.1. Changes from 2024-25

5. [Cash basis: now the default](https://library.croneri.co.uk/po-heading-id_OV0rVemkg0muA0VLk0Dtiw)

6. [Accruals basis](https://library.croneri.co.uk/po-heading-id_Yg80PciQbUqtWUoMLjhNiw)

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

7. [Certain unincorporated businesses cannot use the cash basis](https://library.croneri.co.uk/po-heading-id_LuxAk_DUW0Kipg32dnE5rA)

7.1. Excluded businesses