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A very quick question regarding invoices that cross over into following tax year

(11 Posts)
SacreBlue Fri 12-Jul-13 08:45:27

Haha! scorchio that's a blast from the past and v accurate for Belfast this last few days smile

You're being very good doing your taxes early, I have a few days off and besides updating the advertising and marketing I've very little blush so plenty of time for sunstroke grin

amistillsexy Thu 11-Jul-13 22:21:53

grin sunstroke is an occupational hazard when you're working from home, doing your taxes and it's scorchio outside!

SacreBlue Thu 11-Jul-13 18:36:33

Ooops - that was thanks to snoop & wave at ami <feigns sunstroke>

SacreBlue Thu 11-Jul-13 18:35:30

I'm dealing with smallish amounts too but it is good to know correct procedure. I also think it isn't half as complicated as can be imagined - I had momentary 'omg, have I made a mistake!' and I think lots of folks get put off doing their own books - or going s/e at all - because of 'the fear' grin

So far tho HMRC have been absolutely lovely in helping me hopes this continues it's brave to go out on your own and be worrying about these things so the odd 'omg' moment is a) to be expected and b) totally with it

<waves at snoop> lil s/e business owners making it happen ;)

amistillsexy Thu 11-Jul-13 16:17:21

Thanks so much, Snoop. Unfortunately, you misunderstood...the 2K is the total amount for the year, which puts it into perspective a bit...and means just filling out my tax return is probably worth a quarter of my income, taken at an hourly rate grin.

I'll make sure I do it right from now on, though. Maybe I'll be earning a few hundred thousand by this time next year, and it'll all seem so much more worthwhile!

SnoopySnoopyDoggDogg Thu 11-Jul-13 13:52:30

I wouldnt worry about the missed £2k resulting in any Heavies turning up at your door amistillsexy just include it in 12/13 and apply the correct method going forwad smile

Yes income less expenses. You can claim mileage at 45p per mile provided you are keeping records (which is more than most people do so well done!).

sacreblue sounds like you're doing it correctly too, if work done spans the year end then recognise the portion of work done up to year end in that year and any work not yet done falls into following year.

amistillsexy Thu 11-Jul-13 13:23:59

Thank you Snoop. I've just realised I did it wrong last year, as this year's accounts start with invoices sent in April 2012 for work done in March 2011. That means they were missed off last year's return!

I'm thinking I'll keep the invoices from the start of the year (otherwise they won't be declared at all!), and include the invoices for work done March, that were invoiced April 2013 as well. I'm only talking a small amount here, under 2,000 for the year's income, so I don't think I'll be had up for criminal activity...Will I? confused

Also, it is right, isn't it, that my income is what I've earned MINUS my expenses, which should include mileage at 45p per mile? I've kept records of my mileage assiduously, so I hope that's right!

SacreBlue Thu 11-Jul-13 13:19:37

opps x-post and thanks Snoopy that's reassuring smile

SacreBlue Thu 11-Jul-13 13:18:51

Watching this with interest as it applies to me too. Up to now I have been including in as per the dates the work was completed (and where it spanned a year end have divided it up by weeks into relevant year), rather than when payment was received but possibly I have been doing that wrong....

SnoopySnoopyDoggDogg Thu 11-Jul-13 13:16:56

It should be recognised in the year you did the work, so if you did work in March '13 then recognise the income in your 12/13 accounting year.

Same principal with expenses so make sure you haven't missed any of those either.

amistillsexy Thu 11-Jul-13 13:12:35

I'm just doing my income/expenses for last tax year (2012/13) so that I can inform Tax Credits and ultimately hand over to DH to do my tax return.

My question is, if I wrote the invoice on April 26th 2013 for work done in March 2013, and it was paid sometime in May 2013, which tax year's income does it come under? Is it 2012/13 because that's when it was earned, or 2013/14 because that's when it was invoiced/received?

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