Accrual Basis or Accrual Method is an accounting method whereby income and expense items are included in taxable income or expense as they are earned or incurred, even though they may not yet have been received or actually paid in cash.
Earned income is a critical concept in the financial landscape, particularly for tax purposes, and encompasses income from employment, trades, professions, and more.
Domestic accommodation available for letting for at least 140 days each year and actually let for at least 70 days. Each letting during a seven-month period of the year must also be for less than 31 days. When this arithmetical definition is satisfied, the income arising is treated as if it were trading income. Loss relief is available, pension contributions can be made on the basis of the letting income, and the income qualifies as earned income.
