Small firms get digital dialogue with the taxman As part of a drive to expand HM Revenue & Customs" online services over the next three years, the Government said small businesses will be "able to access all the tax services they need from a personalised home page with secure digital messaging." The Government also confirmed it will allow small, unincorporated businesses to move to so-called "cash accounting" from April 2013, instead of the traditional accruals system. Cash accounting simply involves paying tax on the amount of cash collected minus acceptable operating expenses. It will be available to businesses with receipts of up to £77,000, which will be able to continue to use it until their receipts reach £154,000. Clive Lewis, head of enterprise at the Institute of Chartered Accountants in England and Wales, said the simpler system is useful for the smallest businesses but urged caution for larger and more ambitious ones. He said: "At £150,000 you're talking about quite a serious business that should be able to manage a profit and loss account, not just cash flow. Taking account of things like stock gives you good financial discipline.