May I ask a question about FHL income?

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If, as an example, a booking is made and paid for fully in tax year 21/22 for a holiday to be taken in tax year 22/23, in which tax year should the income be counted - when it was paid or when the holiday is taken?  Thanks in advance for your time.

Replies (6)

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By lionofludesch
25th Apr 2023 11:40

It depends on which type of accounting you use. Cash accounting or proper accounting, laughably described as traditional accounting by HMRC.

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Replying to lionofludesch:
By Hugo Fair
25th Apr 2023 12:22

... which, for the avoidance of doubt and for the benefit of OP (who it seems safe to assume is not an accountant), is not a choice that can be taken with regard to each transaction.
Unlike a puppy it may not be 'for life', but it does apply for the whole tax year - and can't be changed retrospectively (at least not without considerable effort & cost).

As others will no doubt comment ... get an accountant (and do so *before* you make further decisions and incur potentially avoidable costs).

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paddle steamer
25th Apr 2023 12:15

If vat registered there can also be a difference between the accounting recognition and the vat recognition.

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By ireallyshouldknowthisbut
25th Apr 2023 12:28

Also the days occupation count is not when the cash moves. And indeed if this is your first year, is probably not even the year in question.

Just saying given how easy tax is.

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By pauld
25th Apr 2023 15:25

Yes, you may ask a question about FHL income.

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Replying to pauld:
By Latinaid
26th Apr 2023 18:19

pauld wrote:

Yes, you may ask a question about FHL income.

Are you a teacher? My response to a child asking 'Can I go to the toilet?' is 'I don't know, can you?'

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