jbrown_gtfc started this topic @ 10:47 on 20/06/2005
If I invoice a customer in March 2004 and receive payment in June 2005, which tax year (tax return) should this be recorded in?
Many Thanks
James
RE: Keeping Records
constantinesavva | 20/06/2005 01:01 PM
Hi
the proper treatment is for the invoice to go in March 2004 (assuming delivery of service or product not after invoice issued) and be shown as unpaid in the accounts to 31 3 (if thats your accounting year end).
------------------------
Kind regards,
James Constantine
Chartered Certified Accountant
http://www.taxadviceuk.com
FREE Weekly Tax Tips for the small business owner, written in understandable language
RE: RE: Keeping Records
jbrown_gtfc | 20/06/2005 01:54 PM
Hi
Thanks for the reply. I am but a simple sole trader who earns less than £15k per year and so I simply enter my total profit in the box provided on my tax return.
Should the amount received from this invoice be included in last years profit calculation or this years?
Thanks again.
James
RE: Keeping Records
eicol | 20/06/2005 08:10 PM
James
I would assume that by now you would already have submitted your tax return to the Revenue for the tax year ended 5th April 2004.
If you haven't then include it on that tax return. If you have already submitted it you need to include it on your tax return for the year to 5th April 2005.
RE: RE: Keeping Records
jbrown_gtfc | 21/06/2005 09:29 PM
Sorry, it was a typo. It should have been March 2005 and June 2005.
I'm still stuck on this one.
James
RE: Keeping Records
eicol | 21/06/2005 10:46 PM
As it was invoiced in March 2005 it means you earnt the money in the tax year to 5th April 2005. Therefore you should include it on your current tax return as income earned from April 2004 - April 2005.
Hope this helps.
RE: RE: Keeping Records
jbrown_gtfc | 22/06/2005 01:37 PM
Thanks eicol.
