I have long prepared end-of-year accounts for other people and so I am used to working with accruals and prepayments. However, I now have a very uncomplicated tax return to fill in and I wondered how they are entered on there please as I have a receipt for expenses that have been paid in the 2014/15 tax year but they actually belong to the 2015/16 tax year and will be entered into the accounts for that year. I know you can use cash basis accounting but I would prefer to know how to do it if I decide to follow the accruals method.
Thanks in advance for any help given.
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Use accounts basis for traders
If completing tax return for trader use strict accounts aka accruals basis if possible.
HMRC like strict accounts basis for most traders.
Income tax/Class 4 NIC will be charged on net profit in the p&l account (i & e a/c) as adjusted for income tax e.g. private use add backs and depreciation add backs less capital allowances etc
So income and expenses will be ascertained using accruals and prepayments where amounts are material.
If a balance sheet has been prepared enter the balance sheet figures on the tax return. If no balance sheet then forget about it.
For property income use either cash basis if rents are up to £15k per annum or accruals basis. For rents in excess of £15k per annum use accruals basis only.
Not entirely
If a balance sheet has been prepared enter the balance sheet figures on the tax return. If no balance sheet then forget about it..
Don't forget it completely. You'll need to know what you accrued and prepaid when you do next year's accounts.
Rental income of £15k
If completing tax return for trader use strict accounts aka accruals basis if possible.
HMRC like strict accounts basis for most traders.
Income tax/Class 4 NIC will be charged on net profit in the p&l account (i & e a/c) as adjusted for income tax e.g. private use add backs and depreciation add backs less capital allowances etc
So income and expenses will be ascertained using accruals and prepayments where amounts are material.
If a balance sheet has been prepared enter the balance sheet figures on the tax return. If no balance sheet then forget about it.
For property income use either cash basis if rents are up to £15k per annum or accruals basis. For rents in excess of £15k per annum use accruals basis only.
Is this a policy of yours or a policy of HMRC?
Also is £15k rent received or profits?
HMRC
Is this a policy of yours or a policy of HMRC?
Also is £15k rent received or profits?
HMRC - PIM 1101. Scroll down about a foot.
The delayed effect of Martin O'Neil
It was in good in 82, it's been downhill ever since :(
Aha, our relegation companions.
We (the family) support Sunderland (can drive from Edinburgh). Ever noticed what happens to clubs a few years after Martin leaves? Still, we have Big Sam so must now be immune.
Yes actually DJKL
I have long said this!
Martin O'Neil has done well in his career but whenever he leaves a club, they are a complete and utter mess!
Needless to say he is not my favourite person!