Cash accounting for ltd company?

Forum|Forum|7 years ago
April 5, 2019
1 reply
4 views

Hi All, I am a micro business in the UK. My accountant a few years back suggested I should do cash accounting, which I did. I am an Ltd company (freelancer). I am also in the Flat rate scheme. I am not PAYE registered. however, the other day I saw on the government site that Ltds are not allowed to lead cash-based accounting. Could you please confirm one or the other is true (or whether I can do hybrid accounting and what exactly that means)? If I should have done accrual accounting, how can I quickly sort it out with HMRC. Many thanks, Christina

Best answer by Rustler

Hi there,

Thanks for the link, I read that site exactly, hence my question to anybody who is limited company and yet,

doing cash accounting.

I was advised by a chartered accountant so I presumed she knew what she was doing.

Anybody who is limited co and doing cash accounting?

Many thanks again!

I doubt you will find anyone in this community, best option is just start with accrual and move forward, the link is specific, no cash accounting for an ltd, good luck

TaliaI

Level 8

Hello KBO,

We would not be able to advise you on HMRC regulations - you would need to check this with them, who can then advise you of the next steps if this is the case.

Thanks,

Talia

KBOAuthor

Hello Talia,

First, thanks for your quick reply. May I ask though; Are you a moderator or a UK accountant?
My question is for an accountant, who is familiar with the UK rules.
Many thanks again,

TaliaI

Level 8

Hello KBO,

Just an Intuit agent :) Hopefully an accountant user will be able to help you!

Thanks,

Talia

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