Cash Basis & the Trading Allowance for Sole Traders

Two important rules shape how sole traders and small side businesses work out their taxable profit: cash basis accounting, the default method since the 2024 to 2025 tax year, and the £1,000 trading and property allowances. This course explains both, who can use them, and how to choose the best option.

Tutwoo is an independent learning provider. This course summarises HMRC guidance on GOV.UK as at October 2026. It is not tax advice.