Incorrect accounts ' the tax implications
What happens when an adviser becomes aware that accounts submitted for tax purposes contain an inaccuracy? Rebecca Benneyworth looks at the chain of logic applying to the corrections of accounts, and the implications for tax returns.
A client has discovered some late cash receipts that he has failed to claim for in the preceding year's accounts. They are presented to you, and you are satisfied that these have not already been claimed for, but are you permitted to deduct the expenses in the subsequent or even later accounting period?
To start with the accounts.