Accounting Question

(3 Posts)
Tee2072 Tue 12-Feb-13 13:58:46

I doubt I'll owe any tax this year either, MrA, although obviously the year isn't over yet and I could land the Big Client in the next 6 weeks. grin

But I was thinking what your last sentence says. I'll confer with my accountant when he gets back but I think I'll just file the receipt and go on with my life!

MrAnchovy Tue 12-Feb-13 13:42:34

Grey area.

No point in including it in 2011/12 as it won't reduce your tax bill from zero.

Normally I would say include it in 2012/13 as this is the correct treatment under Generally Accepted Accounting Principles in the UK for correction of a non-material omission, but as this would lead to a reduction in tax payable overall there is a moral argument (which may matter to you) and an equitable argument (which HMRC may take up) that you should not benefit from your own careless error to consider. However six quid of tax and Class 4 NI is not worth losing sleep over.

Tee2072 Tue 12-Feb-13 11:14:16

I would normally talk to my accountant, but he's on holiday, so I thought I'd check with y'all.

I was just getting my books up to date and found a receipt for an expense for March 2012, which, of course, I just submitted my SA for at the end of last month.

It's only £21 and my tax bill was £0 this year anyway, but should I do an updated SA? Do you think it would matter?

Thoughts?

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