Can’t claim capital allowances if using cash basis ?

[billyg]

Hi my tax return says I can’t claim capital allowances if using cash basis accounting, how can that be so ?
Surely I am entitled to claim for long term items I buy for business, not just cars ?
Thanks

[robbob]

Cash basis is not suitable for everyone - everyone who uses the cash basis should be aware that you could end up paying extra tax unnecessarily and plan a such. If it doesn’t suit your needs don’t use it. The cash basis should be seen as a Brucie bonus and no more- not everyone gets their brucie bonus. Note as far as brucie bonuses are concerned it’s nowt to do with slang mentioned in urban dictionary !!

When cash basis might not suit your business
Cash basis probably won’t suit you if you:
want to claim interest or bank charges of more than £500 as an expense
run a business that’s more complex, for example you have high levels of stock
need to get finance for your business - a bank could ask to see accounts drawn up using traditional accounting to see what you owe and are due before agreeing a loan
have losses that you want to offset against other taxable income (‘sideways loss relief’)
Talk to a tax professional (such as an accountant) or legal adviser if you need help.

https://www.gov.uk/simpler-income-tax-cash-

Thankfully you can still claim for capital items

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.

https://www.gov.uk/simpler-income-tax-cash-basis/income-and-expenses-under-cash-basis

[billyg]

Thanks for that , that’s clearer