Accruals basis
Counting income and costs when they're earned or incurred, not when cash moves.
Under the accruals basis, a sale counts in the period you did the work or delivered the goods, even if the customer pays months later. Costs work the same way.
Limited companies must use it. Sole traders can choose it instead of the cash basis, which is now the default.
General information about UK rules as of October 2026, not tax or legal advice.