Simpler Income Tax Cash Basis and Simplified Expenses - Income and expenses under cash basis
With cash basis you only count the money you’ve actually received in a tax year.
Any money you’re owed isn’t counted until you receive it.
All payments count - cash, card, cheque, payment in kind or any other method.
You can choose how you record when money is received or paid (eg the date the money enters or leaves your account or the date a cheque is written) but you must use the same method each tax year.
Expenses are business costs you can deduct from your income to calculate your taxable profit. In practice, this means your allowable expenses reduce your Income Tax.
You only count the expenses you’ve actually paid. Money you owe isn’t counted until you pay it.
Examples of allowable business expenses if you’re using cash basis are:
day to day running costs, eg electricity, fuel
admin costs, eg stationery
things you buy to sell on, eg stock
things you use in your business, eg machinery, computers, vans
interest and charges up to £500, eg interest on bank overdrafts
For the 2013 to 2014 tax year you can also choose to use the simplified expenses scheme instead of calculating expenses for use of:
working from home
making adjustments for living on your business premises
There are some types of expenses that you can’t claim, eg anything that’s not used by your business.
Cars and other equipment
If you buy a car for your business, you can claim the purchase as a capital allowance (but only if you’re not using simplified expenses to work out your business expenses for that vehicle).
Unlike traditional accounting, you claim other equipment you buy to keep and use in your business as a normal allowable business expense rather than as a capital allowance.
If you’re currently claiming capital allowances and want to switch to cash basis, HM Revenue and Customs (HMRC) have guidance on the changes you need to make.
FiNMAX mobile apps are available for both iOS and Android devices, which ensures that traders can access their accounts through a smartphone or a tablet. FiNMAX offers specific FiNMAX apps for iPhone, iPad, and other smartphones and tablets. Once again, traders can access almost the entire range of platform features that are available on the desktop platform, while advanced charting options from TradingView can be easily accessed through their responsive template.
FiNMAX Trading Accounts.
Even though the minimum investment required for a Platinum VIP account is high, the trading features can more than justify the initial investment barrier. The only concern is that traders may not feel comfortable depositing large amounts of money at FiNMAX without any proper regulatory protection. Regardless, the company has managed to steer clear of any large controversies, which does make it a bit more dependable than brokers that are located in tax havens.
FiNMAX Demo Trading Account.
FiNMAX offers a limited period demo that is valid only for a week, which is not a whole lot of time to learn the concept in detail. Although FiNMAX has limited its demo account to users, it is far better than avoiding a demo offering altogether. Seasoned traders can use the demo trading account to gauge the efficiency of the platform, while amateur traders can also use the demo period to familiarise themselves with the binary options market and put on a few trades to gain market exposure. Nevertheless, we would have appreciated if the company had provided a bit more time with its free demo account option.
FiNMAX clients can make use of the vast resources for trading, which includes advanced trading charts, personal account manager, and market analytics. Larger account holders have the convenience of trading with signals or use social trading platforms to copy trades from successful traders. The broker also provides market analysis, trading news, webinars, strategy, and VIP trader education. FiNMAX has one of the best trader-oriented resources, which can provide a highly beneficial platform for binary options traders.
There is a drastic amount of confusion surrounding regulatory status. Reduced number of binary options assets.
Yes, traders can download dedicated FiNMAX apps for iOS and Android devices.
FiNMAX offers support through live chat, phone numbers, emails, and Skype address. The customer service channel is only available for 14 hours a day and 5 days a week.