The UK economy continues to face some challenging times and small business owners have borne a large amount of the brunt. The government endeavors to find cheap and painless ways to support small businesses and its draft legislation on using cash as the basis for the calculation of taxable income is awaited with particular interest.

Under draft legislation to be included in the 2013 Finance Bill, it will be voluntary for unincorporated businesses and the receipts limit for joining the scheme will be equivalent to the VAT registration threshold (currently £77,000).