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sudden stupid question re self-assessment

4 replies

lingle · 28/01/2013 17:46

If my tax year ends 5th April 2012, I submitted a bill on 1st April 2012 and it is paid on 7th April 2012, in which tax year is that money taxable? 2012-2013?

Previously I have done it in the year earned, even if that means apportioning bills between tax years.

Am a bit embarrassed so go easy!

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MrAnchovy · 28/01/2013 18:20

It depends on when you earned the income, which is not necessarily when you submitted the bill.

But from 2013/14 the Finance Bill 2013 is planned to provide that self employed people with turnover below £77,000 will be able to account according to when they receive and pay cash providing they follow certain rules.

lingle · 28/01/2013 18:26

Ah - I charge purely per time spent and can invoice at any point after putting in the time.

I appreciate that when I submitted the bill is irrelevant - it's whether I have to tax this income for 2011-2012 despite it not being received until 2012-2013.

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MrAnchovy · 28/01/2013 19:06

Sorry I was a bit unclear.

Yes it has to be included in 2011/12 if you earned it in 2011/12, despite it not being received until 2012/13.

Correspondingly, if you were paid in 2011/12 for work you did not do until 2012/13 you do NOT have to account for it in 2011/12.

The date on the invoice is irrelevant.

lingle · 28/01/2013 19:08

oh good thank you very much.

hurray, I have been doing it right after all.

I think I found some info online and didn't spot it was from the US.

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