Cash basis option for landlords

09 Jan 2019

The cash basis scheme helps sole traders and other unincorporated businesses benefit from a simpler way of managing their financial affairs. The scheme was extended to landlords from April 2017. The scheme is not open to limited companies and limited liability partnerships. The entry threshold for the cash basis scheme is £150,000 and you can stay in the scheme until your business turnover reaches £300,000.

Unlike other taxpayers that need to opt-in to use the scheme, the legislation assumes that landlords will use the cash basis as the default method of calculation. A landlord can still elect to opt out of the scheme, in which case they can continue to use generally accepted accounting practice (GAAP) to calculate their taxable profits. Landlords are also required to continue using GAAP if their rental receipts are in excess of the £300,000 scheme threshold.

The cash basis scheme allows landlords to use the cash basis when recording income and expenditure i.e. recording the flow of money from and to the business based on actual money flows. Traditional accounting uses the accruals basis i.e. income and expenditure is recorded when a bill is received, or a customer is invoiced.

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Stratford Upon Avon

13, The Courtyard
Timothy's Bridge Road,
Stratford-Upon-Avon,
Warwickshire,
CV37 9NP
01789 294484

Mayfair, London

Case Studies

Grenfell James Associates - The Senior Team

Chris works with a diverse profile of owner managed businesses to assist them to grow and retain wealth. Although Chris works with clients from a wide range of sectors, he has particular expertise in property, catering, consultancy and professional services.

Chris Wood

Managing Director ACMA

Alex has worked for Grenfell James since 2002 and became a director in 2013. Overseeing our internal operations, he manages the flow of work and ensures we hit our strict deadlines. Alex also manages a portfolio of clients, with expertise in manufacturing and service businesses.

 

Alex Enstone

Operational Director MAAT

David has worked for Grenfell James since 2006. He heads up our tax team and is highly experienced with expertise in different industries and sectors.

David Murphy

Tax Director ACCA

Hannah qualified in 2016, having worked for the company since 2009. She acts as a client manager for a range of businesses, with expert knowledge of the equestrian and rural sector. Hannah also manages our payroll team.

Hannah Watson

Client Manager ACCA

JP qualfied in 2014, having worked for Grenfell James since 2007. He is a client manager for a diverse portfolio of clients including those in the manufacturing and serivce industries. 

 

Jon-Paul Lawrence

Client Manager ACCA

"~After contacting various accountants about what seemed to be a complicated capital gains issue, I spoke with Damien.He is very approachable, professional and immediately reassured me that it was straightforward. He obviously had experience of the matter.I met him to give him my paperwork and I felt I had no need to worry.He completed the tax return very quickly and the cost was reasonable.I highly recommend Grenfell James Associates and Damien.   "

Mrs Jones

"Grenfell James provide an excellent service with all accounting details explained in a very friendly and understandable manner. I have no hesitation in recommending them to any business wanting concise and reliable service at a very reasonable price.   "

Mr I Cameron

"Thank you Grenfell James for providing an excellent service for both me and Proco. Everything you have said and done has been spot on and on time. A great team and very friendly. Regards, from a very happy customer. "

Proco Coatings & Laminates

"Since taking over the accounting for our two businesses, Grenfell James have taken away any stress we have had in the past with our accounts. They have been very approachable and easy to talk to, enabling us a better understanding of how we need to run our business. "

Paul Stanley. A S Contracts Ltd.

"I am delighted with the professional and efficient way in which Grenfell James Associates do things. In particular, they return my calls quickly, do the things they say they are going to do and do them when they say they are going to. Since our group was established in 1991 they developed all the financial systems that robustly stood the test of time, coping with many millions of pounds of transactions "

Regent Square Estates

"JP has looked after my accounts for a couple of years now, & I have to say nothing is too much trouble for him. As someone who fully appreciates that I know my business, but will always be guided by those who are experts in their own respective discipline, I have never once sent a request or query & not had a reply almost instantly. Highly recommended!     "

Dean. Wootton IT

"Grenfell James have been an amazing partner, managing the pressures that come with taking a start up to a multi million pound concern in 18 months is never easy, but these guys were both strategic and responsive with great ideas and exacting execution   "

Roy Ferguson. The Perfect Cosmetics Company.

"“Grenfell James was instrumental in me setting up my business 10 years ago and Hannah Watson has been with me every step of the way since. Focusing on delivering my business means I don’t want to be worrying about my accounts, VAT and tax issues. Hannah and the team take all of that off my hands and pretty much act as my finance team, advising on everything from everyday payroll to international invoicing. I couldn’t have achieved what I have without them and value their personal attention highly - everyone in the team is extremely approachable and will take time to explain anything I need to know”.   "

Mary Keeley - Mary Keeley Consultancy

"Fantastic all round service level. Tax return peace of mind and highly efficient. Thank you. "

Mr J McCarthy

"For our cash hospitality business, prompt, accurate numbers matter, and the ability to call quickly for break-downs and analysis. GJ is always responsive and ready to be on the case. We never feel short-changed. "

Andrew Knight. The Howard Arms Ilmington

Get in touch

  • 13, The Courtyard
    Timothy's Bridge Road
    Stratford-Upon-Avon
    Warwickshire
    CV37 9NP
  • 01789 294484
  • 7-8 Stratford Place
    Mayfair
    London
    W1C 1AY

  • 0207 495 0304
Supporting Stratford  

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