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Posted Wed, 08 Dec 2021 09:52:09 GMT by leopoldo
When sole traders have to go digital in a couple of years, what would happen to someone (like me) who uses the accrual basis but, as they bill/are paid in a foreign currency, do not know their precise figures until the date on which payment is received? Some clients pay up to 60 days after the invoice date. Would I be forced to switch to the cash basis? Or can I just put the amounts received (i.e. effectively use a cash basis) for the first 4 reports and then report the full, exact amount in the 5th and final report filed when I have the exact figures (using the accrual basis)? Or are payments on account recalculated throughout the year as you file each interim report?
Posted Thu, 09 Dec 2021 08:56:30 GMT by HMRC Admin 20
Hi leopoldo,

Please see current information here on making tax digital:

Help and support for Making Tax Digital.

HMRC would be unable to comment on how the process will work in a few years time. 

Thank you.

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