A sole trader working as a builder has a two week job which overlapped the end of accounting/tax year.
Is the income and expenses relating to the job split pro-rata over the two years?
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UITF40 & FRS5 application note G
UITF40 & FRS5 application note G does not apply to smaller entities . I suggest as a practical measure use invoice date for cost of materials & subby labour ( if any) used. If you want to split the income pro rata, you could do, but if it is a sole trader it may be neither here or there for 2 or 3 days.
On further thought - and rather than amending my first answer - here is my suggestion for income (only income, with cost as per my first post). Work out a rough day rate for your builder & any direct employees (not subbies, for which see my first answer. Multiply this by the number of days worked in the year in question - this is your WIP.
Hmmn
"UITF40 & FRS5 application note G does not apply to smaller entities"
UITF40 + FRS5 Application note - may not be mandatory for small entities - but they are still applicable!
Also the OP needs to read up on the general principles of revenue recoginition - and then make his own mind up as to how to approach it, to which end both publications are a good read.
Besides HMRC want all entities - including unincorporated ones to prepare accounts in accordance with UITF40.