BIM70015 | Cash basis: receipts: overview
From HM Revenue & Customs · Business Income Manual
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Cash basis receipts are any amounts received in connection with the trade during the basis period for the tax year and include:
Cash and cheques
Tips, fees and commissions
Value of any payments ‘in kind’ for work done or goods sold
Some capital receipts (see )
The value of trading stock on cessation of trade (see )
The value of work in progress on cessation of profession or vocation (see )
Just and reasonable additions in respect of non-commercial (non-arm's length) transactions (see below)
Certain transitional adjustments on entering the cash basis (see onwards).
Any cash basis receipts which are received after the cessation of a trade using the cash basis are treated as post-cessation receipts (see ).
Amounts not reflecting commercial transactions
For businesses using the cash basis, there is no requirement to bring into account as a receipt the value of any goods taken from the business for personal use (see ). Instead, a just and reasonable adjustment should be made to reflect the uncommercial transaction. So, for example, the cost of any such goods might be disallowed as an expense.