The Chartered Institute of Taxation (“CIOT”) has expressed concerns over the complexity of the proposed new cash accounting basis for small businesses. The new cash accounting basis is expected to be included in Finance Bill 2013.

Whilst the CIOT backs plans to introduce cash accounting, it is concerned that some of the proposed conditions, such as the withdrawal of the ability to claim certain business expenses and reliefs, have resulted in a ‘complex and unattractive’ package that it would like reconsidered so that the rules are simpler and workable.