289-010 Cash basis and simplified expenses for partnerships
An eligible business may elect to calculate profits for tax purposes on the cash basis rather than in accordance with generally accepted accounting practice. The rules, which are considered in detail at ¶206-481ff., apply to a trade carried on by a partnership in much the same way as a trade carried on by an individual; however, there are more barriers to entry into the case basis for the partnership than for the sole trader.
First, special rules (ITTOIA 2005, s. 31B(4)) apply to partnerships in determining whether cash receipts exceed the ‘relevant maximum’. The rules apply by reference to whether or not the firm has a ‘controlling partner’; see below.