Traditional accounts vs cash basis for sole trader

[eteb3]

Does anyone know if HMRC will let me run traditional accounts for one of my sole trader business, and cash basis for another?

Reason is that only one of the businesses would (might) benefit from using capital allowances. The other one is well established with no capital costs, so I don't want to have to shift that to traditional.

 

[MyAccountantOnline]

Does anyone know if HMRC will let me run traditional accounts for one of my sole trader business, and cash basis for another?

Reason is that only one of the businesses would (might) benefit from using capital allowances. The other one is well established with no capital costs, so I don't want to have to shift that to traditional.

Yes you can.

See here

 

[Daybooks]

As @MyAccountantOnline says yes you can. You’ll need separate SA103 pages for them. You can flip between years with the proviso that income can only be charged once and expenditure relieved once. Thus for example if you have an unpaid sales invoice one year included under the accruals method then you shouldn’t include the cash receipt in the following year under cash basis. You can work the other permutations on the same principle.

 

[ElsolveUK]

Really useful thread. Running two separate businesses as a sole trader and managing different accounting methods for each is one of those things that sounds simple but gets confusing when it comes to filling in your self-assessment.

If you find the SA103 pages tricky to navigate - especially when switching between methods across tax years