Traditional accounting vs cash basis

Hello, after reading the information on gov.uk and the UK property notes, I am confused with the traditional accounting vs cash basis when filing my property income. May I clarify the following: 1) can I file the self assessment of my rental income in cash basis even it is less than 150,000 GBP ? 2) Is cash basis refer to the actual amount I received? for example, I received my rent 10th of every month, then I DON'T need to include the rental income received on April 10, 2023 in the tax year 22/23, am I right? 3) If I am not entitled to use cash basis due to the low rental income, then I need to calculate rental income AND the allowable expenses on a pro-rata basis for the exact period of April 6 2022 to April 5 2023. Please correct me if this is incorrect. Thank you very much,

Hi,

Question 1 you can choose either cash basis or traditional accounting if your turnover is under £150000.

Question 2, Cash basis is used when you invoice  somebody and received the income in the same tax year. Normally with rental income people claim cash basis because under the rental agreement they pay within the same tax year. Therefore if you received a payment on 10 April 2023. This would be entered in your 2023 to 2024 tax year and not 2022 to 2023.

Question 3, may now be irrelevant but if you did want to claim traditional accounting you would need to apportion yes. Cash Basis no. 

Guidance below:

PIM1092 - Cash basis for landlords

Thank you