How strict should you be?

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How strict should you be as an accountant? E.g. If a client asks you to leave accrued income out of the accounts so they pay less tax? Is it ok to include it in the following years accounts? So not evading the tax but deferring it? Same question for vat if under 10k? Would you do this? 

Replies (21)

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By Wanderer
01st Mar 2017 19:20

No & no.

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Replying to Wanderer:
By Ruddles
01st Mar 2017 19:25

and thrice nay

(unless you are talking about a company with turnover of £862 million and total net assets of £567 million.)

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Replying to Ruddles:
paddle steamer
By DJKL
01st Mar 2017 20:59

I thought it was turnover of £8,060 million?

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By mrme89
01st Mar 2017 19:21

Another wind up .

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By In a Daze
01st Mar 2017 19:34

No. I would politely tell the client to find someone else.

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By Johndoe1
01st Mar 2017 19:43

Thanks! This was hypothetical. I am not actually an accountant. I don't actually know what is legal or not as I have not studied it yet. Common sense says this would not be ok!

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JCACE
By jcace
01st Mar 2017 20:57

You could quite legally leave accrued income out of the accounts if you wanted to prepare them on the cash basis, but there are other implications, and as you say, you would only be deferring the income for one year.

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Replying to jcace:
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By Johndoe1
01st Mar 2017 21:21

So limited company accounts don't legally have to be done on the accrual basis? HMRC's website states Ltd Co's and LLP can't use the cash basis? Now I am confused!

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Replying to Johndoe1:
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By Wanderer
02nd Mar 2017 04:49

Quote:

So limited company accounts don't legally have to be done on the accrual basis? HMRC's website states Ltd Co's and LLP can't use the cash basis? Now I am confused!

You haven't mentioned a limited company until this post!

Quote:

I am not actually an accountant. I don't actually know what is legal or not as I have not studied it yet.

Why then are you giving advice as if you are an accountant in your posts on other threads???
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Replying to Wanderer:
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By Johndoe1
02nd Mar 2017 08:24

When have I given advise as an "accountant"? I only answered a question of something I had experience with and at no time did I say I was an accountant in my answer. I didn't realise only qualified accountants were allowed to answer questions! If that is the case then I am extremely apologetic! And no you are correct I did not use the words "limited company" in my hypothetical question but your answer was "no and no" so you obviously knew or maybe your advise would have been better!

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Replying to Johndoe1:
paddle steamer
By DJKL
02nd Mar 2017 10:08

I must spell advice correctly.
I must spell advice correctly.
I must spell advice correctly.
I must spell advice correctly.
I must spell advice correctly.
I must spell advice correctly.
I must spell advice correctly.
I must spell advice correctly.

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Replying to DJKL:
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By Johndoe1
02nd Mar 2017 10:52

You childish individual. Ever heard of predictive text? You have absolutely nothing to offer so please refrain from trolling.

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Replying to Johndoe1:
paddle steamer
By DJKL
02nd Mar 2017 11:05

Strange that, nothing to offer yet you appeared to like my post on the other thread.

Not accountancy advice,I know,but a less prickly demeanour tends to elicit a better response on here.

In my opinion a little light ribbing does no harm, how one reacts to it often defuses a situation and does tend to say a great deal about the individual.

Maybe you are more sensitive than most so to keep the peace I will desist bothering responding re your posts-life it just too short.

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Replying to DJKL:
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By Johndoe1
02nd Mar 2017 11:36

I did not realise that you were the same person as I did not look at the names. I liked your post on the other thread as you were being fair against all the other abuse I was receiving. So to see your comment on here I would not have thought it was the same person. I am not usually sensitive but I asked a question and feel like I have killed someone or something with the abuse I seemed to be receiving. To be pulled up on spelling because of predictive text when this is nothing about my spelling after all the other comments just made me angry. I asked a question and didn't want any of this! I have never posted on a forum before so did not realise that that is what it is like. I will obviously not be posting again and just need to figure out how to delete my account.

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Replying to Johndoe1:
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By User deleted
02nd Mar 2017 11:33

Along with myself DJKL, I'm sure, will have heard of predictive text. The difference, is of course, both DJKL and myself, know how to use and adapt it.

If you play with grown ups, expect to take constructive criticism, occasionally. You never know, you might thank people for it, once you've learnt some humility.

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Replying to User deleted:
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By Johndoe1
02nd Mar 2017 11:42

Maybe because until today I do not spend my life posting on forums. I am typing on my phone quite fast and did not notice. For that I apologise. I am sure you have never made any such error.

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Replying to Johndoe1:
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By User deleted
02nd Mar 2017 12:05

Last chance saloon

Know when to put the shovel to one side.

Of course I've made mistakes. Still do. However, I've learnt when to stop digging and, hopefully, how not to have a prickly attitude. Chips on shoulders don't impress.

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Replying to DJKL:
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By legerman
02nd Mar 2017 11:16

That's one of my pet hates. I cringe when I see the word advise when it should have been advice.

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Replying to legerman:
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By Briar
02nd Mar 2017 13:41

"I should practise spelling advice correctly when I advise an Aweb respondent about his practice" would have been better! (repeated as any times as you like)

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By bernard michael
02nd Mar 2017 10:08

Which pub do you frequent ??

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By I'msorryIhaven'taclue
02nd Mar 2017 16:37

Johndoe1 wrote:

If a client asks you to leave accrued income out of the accounts so they pay less tax? Is it ok to include it in the following years accounts? So not evading the tax but deferring it?

Yes, for a sole trader or partnership; it's called the Cash Basis.

Johndoe1 wrote:
Same question for vat if under 10k? Would you do this? 

Quite likely, by virtue of VAT Cash Accounting.

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