From April 2024, the cash basis will be the default for sole traders with an opt-out for those wishing to use the accruals basis.

The turnover threshold of £150,000 will be removed entirely, so even the higher earning self-employed people will be able to use the cash basis. Under current rules earners over £300,000 are not allowed to use the cash basis.

In addition, existing restrictions on interest deductions and loss relief under the cash basis will be removed.