Tax return - year you do the work or year you are paid?

[Kai1981]

For self assessment, if I do the work in Jan 2021 but don't invoice or get paid until May 2022, which year should I file this into?

I assume it should be 2022/2023 tax year but just want to check?

Depends if you are using cash basis or accruals basis. If cash basis then it will in 22/23. There is some guidance on hmrc on who is eligible for cash basis

There's a tick box on the return for you to choose whether you use the cash or the accruals basis. Just be aware that there are pros and cons and you have to be consistent, i.e. if you use cash basis for income, you can't accrue for expenses incurred but not paid. If you use accruals basis, you have to add back the value of stocks etc at the year end. Losses can't be set against other income on the cash basis, etc. So lots of swings and roundabouts so make sure you read the guidance mentioned above so you fully understand the options and implications.

Thank you, very helpful! 😊